Two-way Flow Of FDI And Factor Allocation Efficiency Research

According to international comparative advantage theory of investment,have been or will be developed in a relatively disadvantaged sectors will be transferred to developing countries,while the capital,technology and management experience to bring these foreign direct investment has been utilized to enhance the host developing countries The elements of allocative efficiency;and because of FDI into the developed countries,so that some have been or are about to lose comparative advantage industries began to shift to developing countries or industries inland areas in eastern China.Allocative efficiency higher foreign investment came in the eastern region,the lower elements of allocative efficiency of capital forced the transfer,thus forming a "two-way flow" of domestic and foreign investment,improve the regional TFP.Allocative efficiency for the contribution to economic growth,the paper Solow residual method and DEA-Malmquist Index Approach estimates of total factor productivity(TFP)were compared,using Malmquist TFP decomposition method will be decomposed into technological progress and efficiency progress,based on the relative size of capital flows F-H model used in domestic provincial level capital flows,combined IFDI and OFDI data,proposed a "two-way flow of capital"model.This paper selects 2003-2012 panel data of China's 29 provinces and cities in the regression analysis,empirical research results IFDI in the eastern provinces of the region to enhance the efficiency of the whole factor is higher than the central and western regions,and IFDI eastern region,OFDI,the size of the domestic transfer "two-way flow" between the formation of effective promotion of TFP eastern region.The Midwest is small due to the size of capital flows,in a certain extent the outflow of capital allocative efficiency in the Midwest to enhance inhibition,R&D investment in the contribution of allocative efficiency may improve the allocative efficiency of the Midwest's an important way,each 1%increase in R&D investment,the central region will be able to enhance the 0.041 percent of total factor productivity,the western region can enhance 0.055%of total factor productivity.In the eastern region,for example,increased by 1 percent of foreign direct investment(IFDI)the entry of foreign direct investment(OFDI)and 1%of the outflow of capital flows within the scale,you can enhance eastern 0.261%of total factor productivity,respectively,to enhance the decomposition of 0.162%and 0.09%of advances in technical efficiency.Therefore,the high allocation efficiency IFDI come,the lower area of the capital allocation efficiency of foreign direct investment(OFDI)or domestic transfer,"FDI flow in both directions," formed to enhance the regional total factor productivity to achieve the transformation and upgrading of industry.Accelerate capital market interest rates,and accelerate the flow of capital flow efficiency and reduce costs is to build "FDI bidirectional flow" model,one of the important means to improve the allocative efficiency of the region.