Abstract: There have been academically controversial in understanding the effect of transferred technology for promoting domestic integrated technology progress (ITP) since the 1992 when the relevant opening policies have been carried out. The paper intends to prove whether there is a mutual growth trend in the long run between technology transfer and ITP in China by using Engle-Granger Co-integration Relationship Test, in which annual sum of technology introduction contracts was adopted as independent variable to characterize the technology transfer quantity, and total factors productivity as dependent variable to characterize ITP. Meantime, Error Correction Model was established to analyze the short fluctuation of technology progress. Based on the positive test result, conclusions were drawn out and some relevant practical suggestions that the international technology should be selectively introduced and the absorbability and adaptability of the transferred technology also should be improved were provided according to economic status of China.