A Empirical Study On The Effects Of FDI And Outsourcing To The Manufacturing Industry TFP Of Jiangsu Province

The way of economic development of China has changed when China's economy becomes steady for a long period.so the way of stimulating demand in the past cannot work for China's economy.therefor,our government has presented another method to deal with it by stimulating supplying.I make TFP as a core variables because it is a valid indicator of the degree of innovation and can reflect the quality of development.Moreover,besides foreign direct investment concerned very early,outsourcing in recent years also have been concerned.Meantime as China is a country of introducing a lot of FDI and outsourcing,there exist a great widespread attentions on the fact if FDI's flowing and outsourcing's undertaking can stimulate China's technology advance.To test whether FDI and outsourcing have an important influences on Chinese manufacturing-intensive industries,we make the manufacturing of Jiangsu Province as the research object to analyze empirically the changes of TFP of it.For the estimating of total factor productivity in manufacturing of Jiangsu province,we use data envelopment analysis(DEA)and DEAP2.1 software to estimate the TFP of 15 industry segments in Jiangsu Manufacturing from 1997 to 2014.At the same time the Manufacturing industry was divided into three different intensive industry,including labor-intensive manufacturing industry,capital-intensive and technology-intensive.So I got the changes of TFP of 15 manufacturing industries in Jiangsu Province and three different intensive industries.In addition,For the calculation of the level of international outsourcing,this paper uses 6 pieces of input-output tables of Jiangsu Province in 1997,2000,2002,2005,2007 and 2012 individually,and use the vertical specialization(VSS)index of Hummels et al(2001)and the FH index of Feenstra & Hanson(1995,1996,1999)to measure the level of international outsourcing of 15 manufacturing industries and three intensive industries of Jiangsu in this six years.Then,I study the effects of FDI and outsourcing on three different manufacturing-intensive industries of Jiangsu Province empirically by using the Panel Data Model,and analyze the empirical results.Finally,the corresponding countermeasures.There concludes several results in this paper.Firstly,in the observation period,both the introducing of FDI and the undertaking of outsourcing of Jiangsu Province,present inverted U-trend.And they distribute in different intensive industries.Secondly,the total TFP of manufacturing industry in Jiangsu Province is increasing annually,but its rate of change exist obvious change in phase.The improvement of total factor productivity mainly depends on the change of technological progress.In addition,the increase in total factor productivity in different intensive industries also depends on technological change.Thirdly,on the condition of irrespective of the regulatory role,FDI can promote TFP of manufacturing inJiangsu Province and TC,while not conducive to improving EC;and the undertaking of outsourcing of manufacturing in Jiangsu province only improve TC,but adversely affect TFP and EC.On the other hand,when we consider the role of adjustment effect,the technology spillover effect are obviously different in three intensive industries.The technology spillover effects of FDI are mainly concentrated capital-intensive industries in Jiangsu Provincial manufacturing while the technology spillover effect of outsourcing is mainly concentrated in labor-intensive industries.