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

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.