| Total factor productivity(TFP) is the important engine of economic growth. In the discussions of the "new normal" of China’s economy and the potential growth of the future economy, it became the focus of attention. Two sources of TFP growth is technological progress and efficiency improvement, while the technological progress are from technology diffusion and technology innovation. In recent years, scholars attach more importance to OFDI. In fact, OFDI can affect country’s TFP not only through technology diffusion channel, but also by promoting domestic technology innovation.In 2014, China’s OFDI scale exceeded FDI for the first time, which suggests that China’s development pattern of dependence on exports and investment to OFDI has had the significant transformation. As a developing country, one of the important purposes of OFDI is to promote technical progress, then improve the level of enterprise TFP. At present, there are many existing literatures to study the relationship between OFDI and technological progress, but there is little literature to study the productivity effect of OFDI, let alone studies based on investment destination selection. Decision of the Central Committee of the Communist Party of China(CCCPC) on Some Major Issues Concerning Comprehensively Deeping the Reform adopted at the Third Plenary Session of the CCCPC, proposed that “We will expand both enterprise and individual investment overseas, establish themselves as foreign-investment entities,allow them to exploit their advantages in overseas investment cooperation.†There’s no doubt that studying the productivity effect of OFDI under this background will bring high theoretical and practical value. Based on this, this paper analyze the mechanism of OFDI productivity effect theoretically, we use a merge database of the list of foreign institutional investors and Chinese industrial enterprises database from 2005-2011, examining the productivity effect of OFDI and the influence of investment destination, furthermore, we discuss the problem of enterprises’ business investment path selection from the perspective of productivity.This paper use propensity score matching(PSM) method in order to eliminate the bias of sample selective. After selecting a control group for OFDI enterprises we found:(1) OFDI shows significant productivity effect in China;(2) both investments in developed countries and in developing countries, OFDI has significant productivity effect, compared with the enterprise invest to the developed country, the productivity effect is larger for those invest in developing countries, this maybe because the weak absorption ability of China and the hysteresis of productivity effect;(3) the productivity effect is larger for those enterprises change their investment destination than those enterprises continue to invest in the same type of investment destination, furthermore, especially for those investment destination changed from developing countries to developed countries, which answered the problem of enterprises’ business investment path selection from the perspective of productivity;(4) in order to guarantee the reliability of the empirical results, we use three methods for robustness test, by expanding and shrinking matching distance, using the output per person as a substitute for productivity index and the method to calculate with smooth enterprise TFP in 2008 and 2009, using all the data in 2006-2011 to test, and the result is sound. Finally this paper makes a systematic summary and put forward the corresponding suggestions. |
