The Influence Of FDI To Total Factor Productivity Of China

Since reform and opening, our country has practiced the strategy of "substitute technology for market", and the strategy attracted drastic inflow of foreign direct investment (FDI). Nowadays, the quantity of FDI of China is still increasing continuously. The " World Investment Report2004 " of United Nations Conference on Trade and Development(UNCTAD)indicated that China has been the largest host country in the world, and it was the first time that the FDI of China is more than America's.In the opening economic, the TFP's improving of one country depends on not only its R&D stock, but also foreign country's R&D spillover. However, whether these FDI have spillovers, whether those spillovers improve the TFP of our country obviously, and relative to domestic R&D stock, whether the spillovers' influence is larger or smaller , there still haven't been definite conclusion yet. This paper is written in accordance with those thoughts mentioned above.So much FDI made up the shortage of capital, brought into new technology that our country needed, and improved the economic growth of our country. However, if the FDI improve the total factor productivity of our country is still unknown. Now, it has become an important topic.Based on statistics from 1985 to 2005 of China, this paper tries to make a comprehensive analysis on the above issues. The study consists of four parts.The first part introduces the background, significance, status, method, creation and difficulty, content of my researchThe second part presents the technology spillovers effect of FDI. It mainly analyzes the conduction mechanism of FDI technology spillover and all factors which affect the spillovers.Part three is empirical study which analyzes the relationship between FDI and TFP through building empirical model. At the same time, there are so many data in this paper, most of which are primary ones, in this part, the author deals with those data and makes regression analysis.The forth part is conclusion. Meanwhile, based on the above analysis, the author put forward the development strategy and policy of attracting FDI.