Empirical Study on FDI to Total Factor Productivity in China -- Based on the Manufacturing Test

摘要

Total factor productivity is the efficiency of production activities in a certain period of time; its growth rate is considered an indicator of technological progress. Endogenous growth theory suggests that technological progress is a source of economic growth. Does FDI promote technological progress in China? This hot topic attracts a large number of discussions recently. Related researches have not yet reached the same conclusion. Therefore, this article will decompose FDI into Hong Kong MacauTaiwan capital and other capital, the total factor productivity is decomposed into technological progress at the level of innovation and technological progress at the level of efficiency, using empirical analysis of 2001-2008 data in manufacturing sector showed that: In general, Hong Kong, Macau and Taiwan capital is not conducive to China's technical progress, and other foreign investment has contributed significantly to the technological progress; but its impact on the efficiency of technical progress more than on the innovation level of technological progress. After controlling for the level of financial development, human capital and capital market development and other variables, the above conclusion is still valid.