A Study On The Spillover Effect Of Foreign Trade On China’s Regional TFP Growth

After the Third Plenary Session of Eleventh Central Committee,China has established the basic national policy of reform and opening up and The national economy maintained rapid growth in quite a long time period.At the same time, the foreign trade becomes more and more important to our country.With the economic growth,people gradually realized that foreign trade is not only an important source of economic growth but also an important way to improve the regional technical efficiency and technological progress. As well more and more people are aware of the economic growth simply relying on additional factor input is not sustainable,and only through the technological progress and the improvement of production efficiency can make the economic growth continuously.Therefore,it has important theoretical and practical significance to study the spillover effect of foreign trade on China’s regional TFP growth.This paper uses the combination methods of qualitative analysis and quantitative analysis, normative analysis and empirical analysis.In order to explore the spillover effect of foreign trade on regional TFP growth, based on the analysis of domestic and foreign related research results,this paper first expounded the connotation and the source of TFP growth and described and compared the accounting and decomposition theories and methods for TFP growth, including the Solow residual method,expanded Solow residual method,SFA,the algebraic index method,DEA and so on. Secondly,based on the description and analysis of the present situation and developing trend of foreign trade, this paper analyzed the spillover mechanism of foreign trade on China’s regional FTP growth from two angles of export and import trade.Thirdly,this paper selected the Malmquist productivity index method based on DEA to measure the national 28 provinces (city) the TFP growth rate of 1978-2012,and analyzed the spillover effect of foreign trade on the growth of TFP from two angles of import and export trade.Analysis showed that,the export trade of our country could significantly promote the regional TFP growth; import trade is not has a significant role in promoting the regional TFP growth,but has some negative effect in the short term.Finally, based on the above research results,this paper further analyzed the problems on foreign trade’s effect on regional TFP growth,and then proposed some policy suggestions to strengthen the promotion of foreign trade to TFP growth, such as promoting the reform of foreign trade system,speeding up the market elements circulation,optimizing the export product structure,strengthen the reform of the main body in foreign trade and strengthen the absorptive capacity for the spillover effect.