Research on Embedded Technology Import and the Growth of TFP in China's Manufacturing Industry —— Based on the Panel Data from 1992 to 2020

Research Article
Open access

Research on Embedded Technology Import and the Growth of TFP in China's Manufacturing Industry —— Based on the Panel Data from 1992 to 2020

Yunsheng Lu 1* , Hao Sheng 2
  • 1 Beijing Wuzi University, Beijing, China    
  • 2 Beijing Wuzi University, Beijing, China    
  • *corresponding author luyunsheng_1@qq.com
Published on 21 March 2023 | https://doi.org/10.54254/2754-1169/4/20221031
AEMPS Vol.4
ISSN (Print): 2754-1177
ISSN (Online): 2754-1169
ISBN (Print): 978-1-915371-17-1
ISBN (Online): 978-1-915371-18-8

Abstract

In the past few decades, the import of embodied technologies, mainly the import of capital goods and intermediate goods, has met the needs of industrial structure upgrading and export expansion. This paper uses the DEA-Malmquist method to measure the total factor productivity and its decomposition value of 26 manufacturing industries in China from 1992 to 2020, and uses a fixed effect model to empirically analyze the impact of embedded technology imports on China's manufacturing total factor productivity. The results show that the import of embedded technology has a positive effect on the total factor productivity of the manufacturing industry and technological advancement, while the impact on technical efficiency is not significant. After classifying the manufacturing industry according to the technical level, it is found that the import of embedded technology significantly improves the total factor productivity of low-tech and medium-tech manufacturing, while the impact on resource-based manufactured goods and high-tech manufactured goods is not significant. Finally, this paper gives policy recommendations based on the empirical results.

Keywords:

Manufacturing, Embedded technology Import, DEA-Malmquist Index Method, Fixed Effects Model.

Lu,Y.;Sheng,H. (2023). Research on Embedded Technology Import and the Growth of TFP in China's Manufacturing Industry —— Based on the Panel Data from 1992 to 2020. Advances in Economics, Management and Political Sciences,4,92-102.
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References

[1]. Xiao J. Research on China's Supply Chain Stability Based on Government Intervention Theory [J]. Contemporary Economic Management, 2022, 44(05): 27–36.

[2]. Zhao C, Wen Lei, Li H. Import expansion, product quality upgrading and Chinese firms gender wage gap [J]. Journal of Anhui Normal University (Humanities and Social Sciences Edition), 2022, 50(01): 131–142.

[3]. Li Jian, Wu Min. Dual Environmental Regulation, FDI, and Green Total Factor Productivity: Taking the Three Urban Agglomerations of the Yangtze River Economic Belt as an Example [J]. East China Economic Management, 2022, 36(01): 31–41.

[4]. Pu Tianlong, Zhang Wei, Wan X. National Strategic Approach of Enterprise Innovation Driven Development—Imitation, Mandatory Isomorphism to Normative Isomorphism [J]. Journal of Henan Normal University (Philosophy and Social Sciences), 2021, 48(05): 67–72.

[5]. Zheng C, He Q. On the Impact of Global Value Chain Embedding on the International Competitives of High-Tech Industry [J]. Price Theory and Practice, 2021, (12): 27–30.

[6]. Yuan J, Bu Wei. How Can Environmental Regulations Improve Industrial Green Total Factor Productivity: Based on the Perspective of the Change of Factor Allocation Ratio Among Different Industries [J]. Economic Issues, 2022, (06): 75–84.

[7]. Tian Y, Lu S, Jin L. Methods, Data and the Difference of TFP Measurement [J]. Quantitative and Technical Economic Research, 2017, 34(12): 22–40.

[8]. Liu J. Study on TFP of China: Review and Prospect [J]. Technological Economy, 2022, 41(01): 77–87.

[9]. Fare R, Grosskopf S, Norris M. Productivity growth, technical progress, and efficiency change in industrialized countries: Reply[J]. American Economic Review, 1997, 87(5): 1040–1043.

[10]. Li Xiaoping, Lu X, Zhu Z. International Trade, Technological advancement and Productivity Growth of Chinese Industries [J]. Economics (Quarterly), 2008, (02): 549–564.

[11]. Yang J. International Trade and China's Technological advancement——Based on Decomposition Trade Data [J]. International Business (Journal of University of International Business and Economics), 2019, (03): 46–58.

[12]. Sheng Bin. Political and Economic Analysis of China's Foreign Trade Policy. Shanghai: Shanghai Sanlian Publishing House, Shanghai People's Publishing House, 2002: 400.

[13]. Chen S. Reconstruction of Sub-industrial Statistical Data in China (1980 —2008) [J]. China Economic Quarterly, 2011, 10(03): 735-776.

[14]. Wang J, Li Y, Ma H, et al. What Drives the Transformation of Labor Productivity Growth in China's Manufacturing Industry： Capital or Technology [J]. China Industrial Economy, 2019, (05): 99–117.

[15]. Chen A, Liu Z. Does import promotion strategy help China's industrial technology progress? [J]. Economic Development, 2015, (09): 70–80.

[16]. Liu J, Zheng S. Research on Technical Efficiency Change and Influence Factors of Chinese Industrial Green Development: Based on the Analysis of the Input-Output Table [J]. Urban and Environmental Research, 2019, (03): 37–54.

[17]. Sheng M, Liu Yue. How foreign direct investment affects the total factor productivity of enterprises [J]. Discussion on Modern Economy, 2021, (06): 84–93.

[18]. Lall S. The Technological Structure and Performance of Developing Country Manufactured Exports, 1985‐98[J]. Oxford Development Studies,2000, 28(3): 337–369.

Cite this article

Lu,Y.;Sheng,H. (2023). Research on Embedded Technology Import and the Growth of TFP in China's Manufacturing Industry —— Based on the Panel Data from 1992 to 2020. Advances in Economics, Management and Political Sciences,4,92-102.

Data availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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About volume

Volume title: Proceedings of the 6th International Conference on Economic Management and Green Development (ICEMGD 2022), Part Ⅱ

ISBN：978-1-915371-17-1(Print) / 978-1-915371-18-8(Online)
Editor：Canh Thien Dang, Javier Cifuentes-Faura
Conference website: https://www.icemgd.org/
Conference date: 6 August 2022
Series: Advances in Economics, Management and Political Sciences
Volume number: Vol.4
ISSN：2754-1169(Print) / 2754-1177(Online)

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References

[1]. Xiao J. Research on China's Supply Chain Stability Based on Government Intervention Theory [J]. Contemporary Economic Management, 2022, 44(05): 27–36.

[2]. Zhao C, Wen Lei, Li H. Import expansion, product quality upgrading and Chinese firms gender wage gap [J]. Journal of Anhui Normal University (Humanities and Social Sciences Edition), 2022, 50(01): 131–142.

[3]. Li Jian, Wu Min. Dual Environmental Regulation, FDI, and Green Total Factor Productivity: Taking the Three Urban Agglomerations of the Yangtze River Economic Belt as an Example [J]. East China Economic Management, 2022, 36(01): 31–41.

[4]. Pu Tianlong, Zhang Wei, Wan X. National Strategic Approach of Enterprise Innovation Driven Development—Imitation, Mandatory Isomorphism to Normative Isomorphism [J]. Journal of Henan Normal University (Philosophy and Social Sciences), 2021, 48(05): 67–72.

[5]. Zheng C, He Q. On the Impact of Global Value Chain Embedding on the International Competitives of High-Tech Industry [J]. Price Theory and Practice, 2021, (12): 27–30.

[6]. Yuan J, Bu Wei. How Can Environmental Regulations Improve Industrial Green Total Factor Productivity: Based on the Perspective of the Change of Factor Allocation Ratio Among Different Industries [J]. Economic Issues, 2022, (06): 75–84.

[7]. Tian Y, Lu S, Jin L. Methods, Data and the Difference of TFP Measurement [J]. Quantitative and Technical Economic Research, 2017, 34(12): 22–40.

[8]. Liu J. Study on TFP of China: Review and Prospect [J]. Technological Economy, 2022, 41(01): 77–87.

[9]. Fare R, Grosskopf S, Norris M. Productivity growth, technical progress, and efficiency change in industrialized countries: Reply[J]. American Economic Review, 1997, 87(5): 1040–1043.

[10]. Li Xiaoping, Lu X, Zhu Z. International Trade, Technological advancement and Productivity Growth of Chinese Industries [J]. Economics (Quarterly), 2008, (02): 549–564.

[11]. Yang J. International Trade and China's Technological advancement——Based on Decomposition Trade Data [J]. International Business (Journal of University of International Business and Economics), 2019, (03): 46–58.

[12]. Sheng Bin. Political and Economic Analysis of China's Foreign Trade Policy. Shanghai: Shanghai Sanlian Publishing House, Shanghai People's Publishing House, 2002: 400.

[13]. Chen S. Reconstruction of Sub-industrial Statistical Data in China (1980 —2008) [J]. China Economic Quarterly, 2011, 10(03): 735-776.

[14]. Wang J, Li Y, Ma H, et al. What Drives the Transformation of Labor Productivity Growth in China's Manufacturing Industry： Capital or Technology [J]. China Industrial Economy, 2019, (05): 99–117.

[15]. Chen A, Liu Z. Does import promotion strategy help China's industrial technology progress? [J]. Economic Development, 2015, (09): 70–80.

[16]. Liu J, Zheng S. Research on Technical Efficiency Change and Influence Factors of Chinese Industrial Green Development: Based on the Analysis of the Input-Output Table [J]. Urban and Environmental Research, 2019, (03): 37–54.

[17]. Sheng M, Liu Yue. How foreign direct investment affects the total factor productivity of enterprises [J]. Discussion on Modern Economy, 2021, (06): 84–93.

[18]. Lall S. The Technological Structure and Performance of Developing Country Manufactured Exports, 1985‐98[J]. Oxford Development Studies,2000, 28(3): 337–369.

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