Research On The Relationship Between FDI Spillover Effect And Total Factor Productivity Improvement In Provinces

With the China Reform and Opening up,the economy and the globalization of the world economy,China economy and the world become more and more dependent on foreign investment,China enthusiasm and passion are on the rise,foreign direct investment(FDI)increased year by year.So far,China has become the world's largest recipient of foreign capital.Because the FDI has brought international technical spillover,so that foreign direct investment plays an increasingly important role in the economic development of our country;and now Chinese economic development into the "new normal" stage,to enhance long-term sustainable development capacity of the economy become our goal,while total factor productivity has become one of the source of the new normal "economic growth.In this paper,the two are linked to explore the spillover effect of FDI and the relationship between total factor productivity improvement.In order to spillover effects on FDI and TFP was quantitatively analyzed,30 provinces and cities based on 1990-2015 in China(except Tibet)panel data as the sample,using data envelopment analysis(DEA)to calculate the provinces of the total factor productivity growth rate of the Malmquist index,and each decomposition;finally,establish the total factor productivity index and technical efficiency index and technical progress index and the foreign direct investment(FDI)regression model,using dynamic panel data analysis of GMM method,FDI impact on the total factor productivity,and put forward the corresponding policy suggestions according to the results of the analysis.The content of this article is divided into five chapters:Chapter one,introduction.Firstly,the background,the significance of the research paper on the existing literature and Research on FDI and total factor productivity is reviewed,summarizing research results of previous literatures on Influencing Factors of service industry,lay the theoretical foundation for this paper.Finally,this paper expounds the content framework and structure arrangement of this paper.The second chapter,the relevant theoretical basis.The main research of this chapter focuses on the theory of the relationship between FDI spillover effect and total factor productivity improvement.Firstly,the definition of the relevant concepts,the use of FDI and TFP and defines the caliber;secondly,this chapter gave a brief overview of the follow-up research to use the theory and methods of technology.The third chapter is the measurement of total factor productivity growth in china.This chapter focuses on the 30 provinces and cities in China in 1990?2015(except Tibet)panel data as the sample,the first estimate of the various provinces and cities nationwide using the perpetual inventory method to estimate the stock of capital assets;then the analysis based on the envelope curve(DEA)to calculate the total factor productivity,Malmquist index and the growth rate of each decomposition.The fourth chapter is the econometric analysis of the impact of FDI on total factor productivity in china.This chapter is mainly on the basis of the third chapter TFP estimates,respectively in the total factor productivity index and technical efficiency index and technical progress index as explanatory variables,and foreign direct investment(FDI)as explanatory variables,to foreign trade,capital stock,per capita government control level as the control variables to establish regression the model of dynamic panel data analysis of the GMM method,get the effect of FDI on total factor productivity analysis results.The article also focuses on the relationship between FDI and TFP in the two different economic environments under the new normal economic model and the traditional economic model.The fifth chapter,conclusions and suggestions.This chapter summarizes the analysis results of the previous chapters,and puts forward some suggestions and propositions on the introduction and development of FDI in China's economy and the improvement of total factor productivity according to the results of the induction.The results of this study show that:China's total factor productivity in to 2008 as the demarcation point,showing the trend of first rise and then decline.There is a significant difference in total factor productivity among provinces,and there is imbalance between provinces and regions.The eastern region and the central region are significantly higher than the western region in terms of technical efficiency and technological progress.The spillover effect of FDI is beneficial to the improvement of total factor productivity,and has positive promoting effect,especially in promoting technological progress.The development of international trade helps to promote its growth,while the effect of government regulation and capital stock is reverse and negative,which is unfavorable to the improvement of tfp.China's TFP development still has a certain degree of path dependence,it is a continuous,increasing year by year,gradual accumulation process.With China's economy entering the new normal,the role of FDI is more obvious,it plays a more and more important role in the improvement of total factor productivity,and then it will have a very important impact on China's economic growth.