Impact Of Outward Foreign Direct Investment On Total Factor Productivity In China

In recent years,China's OFDI has developed rapidly and its growth has increased year by year.But with the world economic growth is slowing,global trade protectionism,China's economy is facing severe challenges,improve the total factor productivity(TFP)has become an important goal to China's economic growth.How to use OFDI to improve total factor productivity is of great significance to the sustained and healthy development of China's economy.Based on China's OFDI,this paper discusses whether OFDI promotes the improvement of total factor productivity.First of all,this paper elaborates the research background and significance,points out that foreign direct investment to the enterprise the importance of total factor productivity improvements,after reviewing the related literature at home and abroad,and then and based on the theory of developing country foreign direct investment,analysis the mechanism of the foreign direct investment to the total factor productivity,from two aspects of the basic characteristics and distribution of our country enterprise of foreign direct investment briefly describes the present situation and problems of development.Secondly,using the method of empirical analysis,based on the micro level data in China,using a fixed effect model and generalized moment estimation(GMM)methods to analyze the specific influence of foreign direct investment to the total factor productivity.This paper mainly studies the following questions: whether the OFDI of enterprises contributes to the improvement of total factor productivity;Affected by multiple heterogeneous enterprise when carries on the foreign direct investment,the different investment subject,sources of investment,investment motivation,investment location,the investment intensity has what impact to the total factor productivity.Through the analysis of the empirical results,the following conclusions are drawn: in terms of investment subjects,OFDI of private enterprises has a significantly greater promoting effect on TFP than state-owned enterprises.In terms of investment sources,the eastern and western regions of OFDI have obvious positive effects on TFP,but the central region has no obvious influence.In terms of investment motivation,the improvement effect of enterprise OFDI on TFP was from strong to weak,followed by r&d and processing,diversification,trade and sales,non-operation and resource development.In terms of investment location,compared with non-oecd countries,direct investment by Chinese enterprises in OECD countries is more conducive to the improvement of TFP.In terms of investment intensity,the improvement effect of total factor productivity of enterprises with high intensity of foreign investment is more obvious.On the basis of the research conclusion,the following Suggestions are put forward: Firstly,The government should guide enterprises to invest in resource-rich countries or regions with large markets,and encourage enterprises to invest directly in high-tech and high-value-added industries.Secondly,Enterprise perspective.Enterprise talent management from two aspects of internal and external promotion experience,set up reasonable foreign direct investment strategy,choose the right according to the purpose of the foreign direct investment foreign investment area,and through the direct introduction of local high-end technical talent,cutting-edge technology to study absorption.