Research On Chinese Enterprises Foreign Direct Investment Based On The Productivity Improved

On account of economic globalization’s drive, the total of foreign direct investment in world is growing, and the internal trade of multinational companies is also more and more. The flow of Chinese foreign direct investment is eighty-seven billion eight hundred million dollars in 2012, and the volume of investment is third in the world. The theories before the new- new trade theory assume that enterprises are homogeneous, and they can’t explain some of current economic phenomenon very well. Therefore, it is necessary to use new-new trade theory to study the issue about foreign direct investment of our country’s companies.Firstly, this article organizes and introduces the theories and literature review which are involved in the article. After the introduction of total factor productivity theory and its calculation and the influence factors of productivity, there are the new-new trade theory and the domestic and foreign empirical study, and the theory supposes that it exists heterogeneity across companies, and it mainly uses the difference of productivity to represent the heterogeneity of the enterprise and carries on the research about the choice of enterprise internationalization path and endogenous organizations within the enterprise. The domestic and foreign empirical study is mainly around whether there is self-selection effect and learning effect. These not only are the theoretical basis of this paper, but also provide a research direction for the empirical study of this paper.Next, it is the present status of the foreign direct investment of our country, and after we understand the existing situation and problems of foreign direct investment of our country’s enterprises, there is an empirical study on Chinese foreign direct investment enterprises, using the data of our country’s listed companies in manufacturing industry from the year of 2004 to 2013. Through the measurement and comparison of the total factor productivity of all kinds of corporations, the empirical research verifies the HMY model’s conclusion. When productivity is increased to 2.77 the corporations will select foreign direct investment, and the investment enterprises’ productivity is 22% higher than those who don’t carry on investment. The increase in productivity will promote the enterprises to carry on foreign direct investment, and every 10.76% increase in productivity will promote a unit of foreign direct investment. And before the enterprises carrying on foreign direct investment, the productivity of these enterprises is 39% higher than those don’t carry on foreign direct investment, and it shows the existence of self-selection effect. After the enterprises carrying on foreign direct investment, on average, the productivity is improved about 25% every year, and it shows the existence of learning effect. And though comparative analysis of two listed companies those are Qingdao Haier and Wanxiang Qianchao, we think some factors such as enterprises’ material capital, human capital, the enterprise scale and r&d spending have an important role to explain the improvement of enterprises’ productivity after the foreign direct investment. Through these studies we know that the increase in productivity will promote the enterprises to carry on foreign direct investment, and the foreign direct investment can promote further improvement of the productivity.Finally, it is the conclusions of the paper, and there are some policy proposals for the our country’s enterprises "going out" better and for the success of their foreign direct investment.