Study On The Impact Of OFDI On Total Factor Productivity

China’s outward foreign direct investment has increased quickly and played an increasingly significant role in the global economy as a result of the rapid growth of economic globalization,outward foreign direct investment has also become a significant way for enterprises to strengthen resource allocation and expand their scale.In addition,China’s economy has shifted to a stage of high-quality development.Increasing total factor productivity is an important way to achieve intensive growth,and it is also a source of power to ensure China’s sustainable economic growth in the future.High-quality development under the macro economy cannot be achieved without the high-efficiency operation of enterprises in the micro market,so improving the total factor productivity of enterprises is a key driver of national economic growth.Therefore,it is of practical guidance to study the impact of OFDI on the total factor productivity for the high-quality development of China’s economy.This paper firstly compares the relevant studies on OFDI and total factor productivity,defines and outlines the concepts and related theories of both,and analyzes the mechanism of OFDI on total factor productivity,then summarizes the development history of OFDI in China and compares the current situation of OFDI in China to grasp the actual situation to provide realistic support.Secondly,based on the data of A-share listed companies in Shanghai and Shenzhen from 2012 to 2020,this paper estimates the total factor productivity for enterprises by using LP method and empirically investigates the impact of OFDI on total factor productivity with the help of propensity score matching and difference in difference method.The findings are as follows:(1)The total factor productivity of enterprises is greatly increased by OFDI,and this enhancement effect has strong robustness;(2)there is a lagged effect of OFDI on total factor productivity,specifically,the enhancement effect of OFDI on total factor productivity shows an increasing and then weakening trend;(3)heterogeneity analysis finds that OFDI of enterprises with different ownership has different impacts on total factor productivity,which shows that OFDI of state-owned enterprises has a significant promotion effect on the enhancement of total factor productivity,while the effect of non-state-owned enterprises is not significant;regarding the regional distribution of enterprises,the effect of OFDI on total factor productivity is greater in the central and western as opposed to the eastern regions.Finally,according to the findings of the theoretical analysis and empirical tests,this paper puts forward policy suggestions for the government and enterprise respectively: the government needs to strengthen policy support and guidance,deepen international cooperation,and put in place individualized foreign investment policies;enterprises should also strengthen talent training to improve the comprehensive quality of employees,and focus on enterprise innovation,strengthen their own core competitiveness.The innovation of this paper lies in the following aspects: firstly,the research objects are selected from the more time-sensitive and rich data of listed enterprises,which may provide more specific and in-depth research insights based on the microscopic perspective of enterprises;secondly,the research method uses propensity score matching-difference in difference,which helps to control the estimation bias such as "self-selection effect" that may exist in the model,so that more reliable research conclusions can be obtained.