The Impact Of FDI On China Agricultural Total Factor Productivity

Since the reform and opening up,the scale of Foreign Direct Investment(FDI)in China has been continuously expanding,we get a lot of benefits in technological progress.Although the proportion of Agriculture Foreign Direct Investment(AFDI)is small,maintaining a steady growth trend,increased from $600 million in 2000 to us $1.1 billion in 2017.China agricultural development and food security are facing new challenges.The quantitative growth relying on input of factors is becoming more and more unsustainable.How to realize the transformation of growth drivers and innovation-driven development is a very important issue.To solve these problems,the key is to promote agricultural total factor productivity(hereinafter referred to as ATFP).The country must strengthen the agricultural science and technology innovation,supports the talented person education,thus promotes the agricultural technology progress.As the carrier of advanced agricultural technology,foreign direct investment in agriculture can bring advanced technology and management to agricultural production through technology spillover.This can promote the sustainable development of China's agriculture.Therefore,it is necessary to analyze the impact of foreign direct investment in agriculture on total factor productivity.In this paper,H-M productivity index method is firstly used to calculate the agricultural total factor productivity of 27 regions including Beijing,Tianjin and Hebei province from 2002 to 2016.It is decomposed into technical progress,pure technical efficiency and mixed scale efficiency,and then analyzed its changing trend.The research results show that the 2000-2016 China 27 provinces agricultural total factor productivity maintains relatively stable growth,the average annual growth rate is 3.8%,including the average annual growth of technological progress,the average annual growth of pure technical efficiency change,and the average annual growth of mixed scale efficiency change.It can be seen that technological progress is the main driving force of agricultural productivity growth in the 27 regions,and pure technical efficiency and mixed scale efficiency contribute little to total factor productivity growth.Through sorting out the research results,it can be seen that the impact of FDI on a country's economy is inconsistent.It is affected by its ability to absorb.Therefore,when studying the relationship between these two factors,factors affecting absorption capacity can be taken into account to further judge the utilization of FDI.Therefore,based on the study of AFDI impact on total factor productivity of agriculture,the characterization of absorptive capacity of various factors(r&d strength,density of capital,technology gap and marketization degree)is set to the threshold variables,using the Chinese provincial panel data from 2002-2016,affect AFDI ATFP threshold effect,and put forward the corresponding countermeasures and Suggestions.The empirical results show that r&d strength and degree of marketization of agricultural total factor productivity in AFDI exists in the double threshold effect,capital density and technology gap single threshold effect,and the r&d input intensity,the density of capital,degree of marketization of eigenvalue spanning corresponding threshold method,characteristic value is lower than the corresponding threshold method,the technology gap AFDI affects the effect of the improved remarkably.Accordingly,this paper puts forward policy Suggestions to improve the role of AFDI in the improvement of agricultural total factor productivity,including improving the intensity of r&d investment,deepening marketization,improving the capital density,and narrowing the technological gap with developed countries or regions to improve regional absorption capacity and improve the utilization efficiency of AFDI.Different regions adopt different AFDI policies according to their own actual development situation.From the perspective of absorptive capacity,this paper finds out that there are different threshold effects in different regions due to different absorptive capacity.This paper consists of six parts.The first part mainly introducts the research background and significance of foreign direct investment in agriculture and total factor productivity.The second part includes references and theoretical basis.The methods of measuring total factor productivity of agriculture,the influence of foreign direct investment on total factor productivity of agriculture and the influence factors on absorbing capacity of foreign direct investment are summarized in the part of reference.The theoretical foundation part expounds the theory of foreign direct investment,endogenous economic growth and gap theory.The third part is the measurement of agricultural total factor productivity.The Hicks-Moorsteen index method is used to measure agricultural total factor productivity,which is decomposed into technological progress,pure technical efficiency and mixed scale efficiency,and analyzed from the perspective of time trend and spatial characteristics.The fourth part is the mechanism and research hypothesis.This paper discusses the transmission mechanism of the influence of foreign direct investment on agricultural total factor productivity and puts forward the research hypothesis on this basis.The fifth part is the empirical analysis.Although previous scholars on the study of the influence of foreign direct investment to the agricultural total factor productivity effect is not consistent conclusions,but they generally think of absorptive capacity will effect on spillover effect of foreign direct investment(fdi),so this paper tries to build panel threshold model,the characterization of absorptive capacity of various factors(r&d strength,density of capital,technology gap and marketization degree)is set to the threshold variable to analysis the structure change between the two.The empirical results show that the research investment intensity and capital density have double threshold effect,and the technology gap and marketization degree have single threshold effect.When r&d investment intensity and capital density cross the second threshold,and technology gap and marketization degree cross the first threshold,the positive spillover effect of foreign direct investment is significantly strengthened.The sixth part is the conclusion,the countermeasure suggestion and the future prospect.On the basis of theoretical research and empirical analysis,this part puts forward Suggestions from four aspects,such as improving the intensity of r&d investment and its capital density,narrowing the technological gap with developed countries and deepening the market degree,so as to improve the absorption capacity of the region and make better use of foreign capital.It is pointed out that each region should adopt different policies to utilize foreign investment according to its actual development.