The Impact Of Foreign Trade And FDI On Total Factor Productivity

In the wave of globalization,foreign trade has become an important means of promoting economic growth in all countries.Guangdong is at China’s reform and opening up forefront.Since 1978,it has gradually expanded its opening up,which has developed foreign trade and economy,promoted the growth of economic,and at the same time,it has promoted the transformation of the mode of economic growth.The impact of foreign trade and foreign direct investment on total factor productivity has always been the focus of academic circles.The purpose of this paper is to explore the transformation of Guangdong’s economic growth mode and sustainable development through the changes of foreign trade and foreign direct investment on total factor productivity in 21 regions of Guangdong.This paper combs the methods of calculating total factor productivity,and compares the advantages and disadvantages of various methods.Finally DEA-Malmquist method has been chosen to calculate the TFP according to the data of 21 cities and regions in Guangdong.Then this paper analysis the effects of Guangdong’s foreign trade,foreign direct investment,scientific research funds and industrial structure on Guangdong’s total factor students through least square regression analysis.The research find: First,the total factor productivity of Guangdong has shown an upward trend.Since 2000,the average annual growth rate has been 3.69%,and the development rate among different regions is also different.Secondly,both imports and exports have a positive effect on TFP,while FDI has a time lag effect on TFP.Thirdly,the service-oriented development of industrial structure can promote the total factor productivity of Guangdong Province,and the increase of investment in scientific research funds can improve the total factor productivity.Finally,based on the analysis of the empirical results,this paper discusses how to realize the transformation of Guangdong’s economic growth mode,and puts forward some suggestions on how to rationally allocate resources,continue to maintain the growth of import and export,optimize the structure of import and export,improve the ability to absorb foreign capital,increase R&D investment and optimize the industrial structure.The intensive development of liberal transformation has reference significance.