Trade Openness,Government R&D Input And Firm Total Factor Productivity

In the context of the impact of COVID-19 and the major changes in the domestic and international environmental situation,how to improve the total factor productivity of Promoting China’s enterprise development and economic growth has become an important theoretical and practical issue.Openness to trade is an important factor affecting overall factor productivity in the new norm and plays an important role in economic development.At present,the domestic and international situation is unstable,which makes the process of Chinese trade opening seriously hindered,thus hindering the road of development and transformation of enterprises.Therefore,while urging enterprises to reform production efficiency,we should pay attention to its correlation,role and position in the process of trade opening.At the same time,as an important part of innovation-driven strategy,government R&D investment has a self-evident impact on enterprise innovation.Therefore,it is particularly necessary to explore the effects of trade opening and government R&D investment on total factor productivity of enterprises.First,based on the research of Barro and Sala-i-Martin(2004),this paper deduces the theoretical model of trade openness,government R&D investment and firm total factor productivity,and concludes that trade openness and government R&D investment have a positive impact on firm total factor productivity.Secondly,this paper analyzes the characteristic facts of trade opening,government R&D investment and total factor productivity of enterprises,and further obtains the characteristic facts of region division,ownership,industry and technology.Thirdly,this paper empirically tests the data obtained.The regression results of total samples show that:(1)Trade opening has remarkably promoted the improvement of whole-factor productivity of companies.(2)Government R&D investment has remarkably promoted the whole-factor productivity improvement of companies.The subsample regression results show that:(1)Increase the total productivity of firms in the eastern part of the country by opening up trade in research and development and public investment.2)Open trade and public investment in research and development will greatly increase the total sales of state-owned and private enterprises.(3)Trade opening and government R&D investment both significantly promote the total factor productivity of tertiary industry enterprises.(4)Trade opening has the most obvious promoting effect on the high-tech industry with high technology requirements,while the government R&D investment has a stronger promoting effect on the low-technology industry.Furthermore,it analyzes the influence mechanism of trade openness and government R&D investment on the total factor productivity of enterprises,and empirically tests the intermediary role of enterprise R&D investment in the process of trade openness and government R&D investment in promoting the total factor productivity of enterprises.The research finds that,Trade opening and government R&D investment can promote the total factor productivity of enterprises through the partial intermediary effect of increasing enterprise R&D investment,so our country should unswervingly push forward the process of trade opening,establish a high level of opening up pattern,in order to improve the total factor productivity of our enterprises,improve the government’s r&d investment and efficiency,increase the enterprises’ research and development.