FDI and TFP evolution of private manufacturing sectors in Jiangsu province

Using panel data of 2000-2007 years, FDI technology spillover is found in private manufacturing enterprises of Jiangsu province. The result indicates that the total factor productivity of private enterprises has gained a growth rate about 7.7% per annum. The technology change is the key element of the growth of total factor productivity. The horizontal, the forward and the backward spillover promote the growth of total factor productivity by upgrading the technology change. But the technology efficiency puts a negative effect to the total factor productivity on some extent. The backward connection spillover can promote the pure technology efficiency and the technology spillover within industry is beneficial to the scale efficiency.