Influence of Spatial Agglomeration and FDI on Total Factor Productivity of Chinese Furniture Enterprises

Taking furniture enterprises in the database of Chinese industrial enterprises from 2005 to 2013 as samples, this paper uses ACF-OP method to measure the total factor productivity of Chinese furniture enterprises, and analyzes the influence of spatial agglomeration and foreign direct investment on it. The results show that the kernel density graphic of the total factor productivity of Chinese furniture enterprises is close to normal distribution. Spatial agglomeration is not conducive to improving the total factor productivity in furniture enterprises, which verifies Williamson’s hypothesis, while FDI is in favor of enhancing the total factor productivity of furniture enterprises. The interactive effect of spatial agglomeration and FDI significantly promotes the positive externalities of agglomeration economies and the total factor productivity of furniture enterprises. The influence of export on the total factor productivity of furniture enterprises is significantly negative, which proves the existence of “productivity paradox” in furniture enterprises, while the influences of R&D innovation and enterprise age on the total factor productivity of furniture enterprises are significantly positive.