Foreign Direct Investment,Technological Innovation And Total Factor Productivity

At present,most of the world's foreign direct investment has entered the service industry.In 2016,76% of China's outward direct investment flows were concentrated in the tertiary industry.After the international transfer of manufacturing industries takes place,the international industry transfer of service industries will become a new target for international transfer.As one of the important means for the international transfer of service industries,the proportion of international direct investment in service industries in the world continues to rise,which has strategic significance for the development of China's economy and the internationalization of the service industry.However,the development of China's service industry has a typical "service industry development mystery"(the rapid growth of the economy and the relative lag in the development of the service industry).Therefore,improving the total factor productivity of the service industry is the key to the transformation and upgrading of the service industry;especially in "Going global" and the call for the construction of an innovative country,the promotion of total factor productivity of the service industry is the highlight of the development of the service industry.This paper differs from the existing studies on the improvement of total factor productivity.First of all,this article takes the service industry data as the research object,and examines the relationship among direct foreign investment(OFDI),technological innovation(R&D)and total factor productivity(TFP)of the service industry;at the same time,it portrays the changing trend of the total factor productivity of the service industry in China.Secondly,the OFDI,R&D input,and service TFP were included in the unified analysis framework,and the impact of the interaction between the two on the improvement of total factor productivity was examined.Again,the service industry is divided into the producer service industry and the life service industry for regression and analysis to ensure that the empirical results are more targeted.Finally,a threshold effect test was conducted using the R&D capital investment as a threshold variable to determine how OFDI impacted the service industry TFP improvement within different thresholds.Through theoretical and empirical research,we have reached the following conclusions.First of all,during the period from 2003 to 2015,the total factor productivity of China's service industry showed a trend of year-by-year growth,but itsgrowth rate has undergone a phased change;the average total factor productivity of all sub-sectors in the service industry has increased by 4.6%,of which the improvement in technical efficiency is the main reason;Regardless of the total factor productivity of the producer service industry or the living service industry,most industries showed an upward trend,but the update of the technology level is not obvious.Secondly,the regression results of the main explanatory variables of the producer services industry and the service industry are consistent,showing that: the scale of foreign direct investment and investment in research and development funds have a significant role in promoting the promotion of TFP,and the interaction items between the two have improved the TFP.Inhibitory effect: As a traditional service industry,the domestic service industry is opposite to the producer service industry in the improvement of total factor productivity: OFDI and R&D have a negative impact on the promotion of TFP,but will increase TFP under the interaction of the OFDI with R&D.Finally,using the threshold model to examine the threshold effect of OFDI's R&D investment in China's service industry TFP.Research shows that OFDI's impact on service industry TFP has obvious double-entry effect on R&D capital investment.When R&D capital investment is at the threshold of 6.929 and 13.788,OFDI will significantly promote the increase of service industry TFP.