Research On FDI Technology Spillover Channels And The Growth Of TFP Of Chinese Domestic Manufacturing

Since1993, compared with other developing countries, China to attract foreign direct investment (FDI) has come out on top. Data from UNCTAD released shows that during1980-2002, the global economic growth is more rapid, relatively smooth adjustment of economic structure, foreign direct investment and more rapid growth rate than in the past. By the end of2002, according to statistics, global direct investment increased tenfold compared with1980, which totaled$71,000. The United States as the world’s absorption of foreign direct investment "leader" will undoubtedly dominate in this arena of absorbing foreign direct investment1.351trillion U.S. dollars, becoming the world absorb up to foreign direct investment, the second third place were the United Kingdom$639billion, Germany$452billion. In2002the total foreign direct investment in developing countries attracted about33per cent of these countries’ gross domestic product, however, in1980the proportion of foreign direct investment in GDP accounted for only13%. For China, as of the end of2011, China had approved the establishment of foreign-invested enterprises has reached738,000, the amount of the actual use of foreign direct investment reached$1.17trillion. These foreign companies have created35%of China’s industrial output for China to solve the30million labor force, while the proportion of the total value of foreign trade in China has reached more than half. China to attract foreign direct investment from1990ranked seventeenth, jumped to second in the world in2011, attracted a total of1.17trillion U.S. dollars of foreign direct investment.Manufacturing industry as a pillar industry of the national economy, during1978-2007, China’s manufacturing cumulative FDI$489.643billion, and has maintained an upward trend. In this paper, data envelopment analysis (DEA), on TFP decomposition of specific factors, mainly divided into technological progress and technical efficiency in manufacturing1999-2007panel data, using econometric models, FDI technology spillover channels for influence in this industry for productivity are analyzed.We find that FDI technology spillover channels has a positive impact on total factor productivity, which FDI technology spillover three different channels on total factor productivity, technological progress and technical efficiency has a different role in the return, return the expected results of this remained consistent: after the correlation effects on total factor productivity changes and technological progress have a positive effect, as described by multinational companies as well as suppliers of intermediate products provider, access to more technology spillovers, mainly through technological progress channels to promote the growth of total factor productivity, while the technical efficiency of the regression results are not obvious; ago to correlation effects regression results for changes and changes in technical efficiency TFP is negative, the regression results of technological progress positively correlated, but not significant, meaning that foreign-funded enterprises as suppliers, did not make the domestic enterprises to get more technology spillovers, does not promote domestic technological efficiency, there is no domestic enterprises to promote technological progress; horizontal overflow effect of Change in technical efficiency and total factor productivity showed a positive correlation between the level of the spillover effect of changes in total factor productivity, primarily through the technical efficiency of the ways to achieve, and the spillover effect on the level of technological progress is negative regression results value, that is, did not bring the level of spillover effects of technological progress, or that there is no spillover effect of the level of domestic enterprises promote the level of total factor productivity through technological progress way.In addition, as the impact of TFP control variables, including domestic business investment in R&D on TFP growth play a catalytic role in promoting this approach and total factor productivity is mainly achieved through technological progress, which indicates that domestic enterprises to increase R&D investment, domestic enterprises is an important means to improve the fundamental technical level, in order to promote the extension of the production possibility frontier, to achieve technological advances; export another important control variable-funded enterprises delivery return result value is positive, indicating that domestic enterprises export TFP will also play a positive correlation effect, this effect is mainly achieved through technological progress. The proportion of highly qualified personnel for the manufacturing TFP growth in China also has a significant positive effect. It showed, not simply to attract foreign investment and promote the improvement of manufacturing productivity; improve the technology spillover effects of foreign direct investment, the key lies in the path of industrial development based on structural features make the right choice in terms of development strategies and policies.