A Research On The Effect Of FDI On TFP Of Manufacturing Industry In Shanxi Province

In the process of world economic integration,the impact of FDI in economic development has been proved postivly from the theory and practice.In the context of the currently global economic downturn,the world has increased the introduction of FDI,and China has paid more attention to the positive impact of FDI.As the energy base of China,the use of FDI develops fast in Shanxi Province.The number of newly approved projects and the use of FDI are in the order of growth.Investment in the field from the early general processing projects expanded to the high value-added industries,foreign origins continues to increase,promoting the development of Shanxi's economy,stimulated the relevant enterprises to enhance the level of technology and management.Manufacturing industry as the pillar industry of the national economy,is the basic source of technological innovation,but also the driving force of economic growth in Shanxi Province.During the period from 2005 to 2015,the proportion of total foreign direct investment reached three percent in the manufacturing industry in Shanxi province,which promoted the economic development of Shanxi Province.In this paper,DEA data envelopment analysis is used to calculate the total factor productivity and its decomposition index(technological progress and technical efficiency in manufacturing industry in Shanxi Province from 2005 to 2015.This paper analyzes the influence of foreign direct investment on the total factor productivity of manufacturing industry in Shanxi province from the perspective of technology spillover mechanism by using the panel model,using the horizontal technology spillover,the forward technology spillover and the backward technology spillover.This paper finds that FDI has promoted the growth of total factor productivity in Shanxi Province,the effect of the horizontal spillover and backward technology spillover are significant and obviously,but the forward spillover is obviously but not significant,in that technological progress has played an important role,but over-reliance on foreign technology,will hinder the increase in TFP.In view of this,this paper argues that In view of this,this paper argues that Shanxi Province's manufacturing industry can through talent exchange and cooperation to promote the demonstration effect,personnel training and mobility effects and competitive effects of the level of technology spillover effect during using FDI.Deepen the vertical relationship betweenforeign-funded enterprises and local manufacturing enterprises,accelerate the integration of the global value chain of foreign-funded enterprises,and improve the competitiveness of products to increase the purchasing power of foreign-funded enterprises in the middle products of the local enterprises,in order to promote the effect of backward technology spillover.At the same time in the process of digestion and absorption after purchasing products of foreign-funded enterprises,Shanxi manufacturing enterprises should pay more attention to improving the ability of independent innovation,then promotes the improvement of TFP.