Research On The Impact Of FDI On China's Total Factor Productivity

In the context of economic globalization,economic activities among countries become more frequent.In addition to the import and export trade of goods,the flow of capital is also the main activity of the economic exchanges among countries.Foreign direct investment is one of the main ways of the flow of capital in the globalization.They believe that foreign-invested projects can not only supplement the domestic economic development funds,but also bring the advanced technology and management experience to the host country through its spillover effect,thus promoting the domestic economic development.In order to attract more foreign investment,developing countries have improved their investment environment at home,improved infrastructure construction and introduced various preferential policies to attract foreign investment.In developing countries,China is the country that uses the most foreign investment.In 2017,China's foreign investment volume has ranked the second in the world.The foreign investment volume of agricultural inflow has also increased from US $81.4 billion in 2016 to US$913.6 billion in 2017,with a growth rate of 1022.674%.In 2018,FDI [ Without special explanation,"FDI" and "foreign direct investment" in this paper refer to "Agricultural FDI".]record high reached $954.9 billion.This is the "introduction" and "going out" strategy achieved remarkable results,Also shows that our country has a strong appeal.A surge in foreign direct investment in agriculture reflects in perfecting our country agricultural infrastructure and the development of our country agriculture has great potential.But the modernization of agriculture in our country is still in the initial stage,the low level of technology,mechanization of utilization rate is not high.And with the rapid development of industry,service industry and urbanization in China,less and less of the basic factors of production such as labor,capital,land allocation in agricultural production,in the face of growing population,demand for agricultural products,improving agricultural total factor productivity is one of the best choice in China.Want to FDI spillover effect maximization,The absorption capacity of host country is also very important factors,this paper obtain ability,imitation and transformation ability and application ability three aspects analysis of absorptive capacity,and the level of economic development level,human capital and financial development as absorbing ability.In FDI increasing,total factor productivity of agriculture urgently needs to improve the reality of the situation,Can FDI promote the growth of total factor productivity of agriculture in China? Does FDI mainly improve the impact of agricultural technology or agricultural technology efficiency to achieve the impact on total factor productivity of agriculture?The influence of FDI on total factor productivity of agriculture and the threshold effect of absorptive capacity in the process of FDI spillover effect are the key issues of this paper.Combined with the actual situation of FDI development in China,this paper summarizes the mechanism of FDI's influence on total factor productivity in China,and USES the dea-malmquist index method,a mainstream method to measure total factor productivity,to measure agricultural total factor productivity.On this basis,this paper carries out the basic regression empirical calculation,and analyzes the agricultural total factor productivity into agricultural technological progress and agricultural technological efficiency.The results show that FDI has a significant promoting effect on the improvement of agricultural TFP,and the main effect of FDI on the improvement of agricultural TFP comes from the progress of agricultural technology.Based on the basic regression model,this paper sets the threshold effect model with the economic development level,human capital and financial development level as the threshold variables.Threshold regression results show that the three variables in the process of FDI effect on agricultural total factor productivity in all play a positive role in the threshold,and the level of economic development and human capital in the FDI impact on the agricultural technology progress also has significant effect of the threshold,the level of financial development in the process of the influence of FDI on the agricultural technology efficiency there is also a threshold effect.The research contents of this paper are as follows: the first chapter is the introduction,which mainly includes the research background and significance,research content,research methods and objectives,as well as the innovation and shortcomings of this research.The second chapter is the literature review,mainly to domestic and foreign literature sorting and induction.The third chapter is China's use of FDI status analysis and total factor productivity growth rate calculation.The fourth chapter is the mechanism analysis of the influence of FDI on agricultural total factor productivity.This chapter mainly analyzes the mechanism of FDI's influence on agricultural total factor productivity from the aspects of competition effect,demonstration effect,staff turnover effect,r & d revenue effect and industry correlation effect,and analyzes the mechanism of absorption capacity's influence on the five effects.The fifth chapter is the setting of the model and its data description.This chapter mainly includes three empirical models,including the impact of FDI on total factor productivity of agriculture,the impact of FDI on agricultural technological progress and technical efficiency,and the impact of absorptive capacity on the spillover effect of FDI in the agricultural sector,as well as the selection of variables,data source description and empirical result analysis.Chapter six is the conclusion and policy recommendations.Combined with the research results of this paper,some policy Suggestions are put forward which are beneficial to the positive impact of FDI on agricultural TFP.