The Impact Of FDI On Chinese Edible Oil Industry’ TFP

The modern technology revolution, especially the information technology revolution, which greatly promoted the economic globalization and technological globalization. And in this process of deepening globalization, foreign direct investment as capital, technology and other elements important carrier mobility, is not only a unilateral transfers of capital, but also accompanied by the transfer of advanced technologies and advanced management experience method transfer technology to developing countries to shorten the gap and achieve economic leapfrog development has a very important significance. However, excessive entry of foreign capital will produce a certain threat to the national capital. The degree of market deepening, the phasing out of foreign capital into the region, quantity and equity restrictions, domestic grain market is gradually opening up. As a national basic industries, oil processing industry related to national economic development and security. It is worth studying the monopoly of foreign capital in Chinese edible oil processing industry.This paper focuses on the following issues:(1) What is the structure of the oil market, foreign-funded enterprises in the market in which the status;(2) the existence of the industry FDI spillovers, how ownership structure, industry structure, market structure impact the TFP of enterprises.In order to answer whether the monopoly of foreign edible oil processing line issue.The study found that:In recent years, the rapid development of Chinese edible oil processing industry, where technological progress is the main driving force; lot of losses and long-term lay-off SMEs are mergered and acquisited, experienceing industry reshuffle, the foreign-funded enterprises expanded the market influence and gradually getting control over the industry, COFCO collective and the collective Wilmar with its high market share monopoly in the industry, in both the upstream and downstream industry chain is the core of the private-funded enterprise development space is limited. FDI in Chinese edible oil processing enterprises spillover effect is not obvious, only state-owned enterprises approach to enhance their total factor productivity through technological diffusion, the TFP of private enterprises are independent with foreign-funded enterprises, the collective development is squeezed by foreign enterprises.