Regional Diff Erences In FDI Of Producer Services Affecting Total Factor Productivity In Manufacturing

Since the reform and opening up,the increasing strength of China's manufacturing industry has promoted foreign trade,and China's economic and trade with the world have continued to deepen.At the same time,the gradual opening of the domestic environment has brought a large amount of foreign investment to the manufacturing industry.Through the advanced technology brought by foreign capital and the continuous development of China,manufacturing industry has won the reputation of "Made in China".However,affected by the international financial crisis,the adjustment of the domestic economic structure and other factors,the development speed of China's manufacturing industry has gradually slowed down.In order to realize the stable operation of China's economy and the development of the manufacturing industry,the Chinese government pointed out in the "Guiding Opinions of the State Council on Accelerating the Development of Productive Service Industry to Promote the Adjustment and Upgrading of Industrial Structures",promoting the transformation of China's industry from manufacturing to producer services and supporte the upgrading of manufacturing industry with productive service industry.FDI is one of the important input of the productive service industry.Therefore,studying how FDI in the producer service industry implements the improvement of the total factor productivity of China's manufacturing industry has important practical significance for the transformation and upgrading of China's manufacturing industry.Because the manufacturing industry and the producer service industry are interrelated,this paper analyzes the mechanism of the producer service industry FDI affecting the manufacturing technology through the technology spillover effect after defining the related concepts and theories.Then based on the status quo of China's manufacturing and production service industry,the article compares the trend of manufacturing technology changes in China's eastern,central and western regions and the distribution of FDI in the production services in 23 provinces.The results show that the manufacturing technology of the eastern provinces with higher FDI in the producer service industry is developing slowly,while the FDI of the productive service industry is relatively low in the central and western regions where the total factor productivity of the manufacturing industry is rising rapidly.Then in the empirical part,based on the data of 23 provinces,municipalities and autonomous regions,this paper selects the thresholds of FDI,urban per capita wages,and total manufacturing output value of each region,and uses the threshold panel model to analysis the data of 23 provinces from 2005 to 2016.Through testing,it is found that the impact of FDI on the total factor productivity of manufacturing industries in each province is inverted "U" shape,when the amount of FDI is below or beyond the threshold,it will have a certain negative impact on the manufacturing industry.Only when FDI is in moderation,the scale of FDI in the producer service industry can promote the total factor productivity of manufacturing.The correlation effect,competition effect,and human capital effect expressed by related variables also have a single threshold or double thresholds.According to the threshold distribution of each province and the different impacts of FDI in the producer service industry,the article gives corresponding suggestions for the use of producer service industry FDI to promote the technological progress of manufacturing in the eastern,central and western provinces of China.