Confucius Institutes And The Reverse Technology Spillover Of Chinese OFDI

With the development of Chinese economy,Chinese economy and culture show a trend of exporting to the world.At the macro level,the net value of China’s OFDI has maintained continuous growth for many years since 2003.At the micro level,the countries and regions involved in China’s OFDI have covered most of the countries and regions in the world.At the same time,China’s Confucius institute after open since 2006,from a single individual Asian countries gradually radioactive development,distribution to the five continents,and won great growth in number,the function of the Confucius institute also gradually from the basic functions such as language teaching widen to business cooperation,provide enterprises with information way to understand the local market,etc.Among the returns brought by OFDI,some scholars pay attention to the fact that foreign investment can not only open up foreign markets,but also bring technological returns and the reverse technology spillover effect of OFDI enterprises.Many scholars have tested the existence of reverse technology spillovers,and some scholars have explored the interaction between reverse technology spillovers and reverse technology spillovers by combining the relevant theories of institutional distance in institutional theory.However,at present,there are few practices in the academic circle to expand existing studies by combining the emerging institutional connection theory,which is worth exploring.Most of the research on Confucius institutes focuses on qualitative research,and only a few quantitative studies focus on the impact of Confucius institutes on China’s trade and export.So far,there is still no relevant research on the possible influence of Confucius institutes on OFDI technology returns of enterprisesThe innovation of this paper lies in that from the perspective of research,it creatively explores the connection and influence between Confucius institutes and the reverse technology spillover effect caused by China’s OFDI.On data match the list of foreign investment enterprises in China and China’s industrial enterprise databases,to collect the hanban an annual development report released by the Confucius institute and extraction of the Confucius institute in 2007-2013 each year in distribution and number of countries and regions in the world,the use of the number of Confucius institute on the micro level data of this paper has certain leading;In terms of research methods,this paper innovatively applied the PSM analysis method to the measurement process,and effectively solved the difficulty of finding a reasonable control group and experimental group.Based on this,this paper using PSM method to examine the existence of reverse technology overflow effect,in the second phase of PSM model to explore the Confucius institute will have impact on reverse technological overflow effect brought by the OFDI,number of Confucius institute in the third stage,the enterprise fixed assets,employment,and cultural distance,geographic distance and so on factor regression,further to explore the influencing factors of reverse technological overflow effect.The empirical study in this paper finds that the reverse technology spillover effect brought by OFDI by the enterprises in the sample does exist.Meanwhile,the existence of Confucius institutes in the investing countries/regions will have a significant impact on the reverse technology spillover effect of OFDI.At the same time,there is a positive correlation between the number of Confucius institutes and OFDI’s technical returns.The cultural distance in the institutional distance will have a significant impact on the reverse technology spillover effect of China’s OFDI enterprises,while Confucius institutes can reduce such negative effects and play a regulating role.According to the empirical results,this paper needs as well as the potential for foreign investment enterprises in our country put forward the following Suggestions:(1)OFDI decisions priority countries/regions(2)with the Confucius institute of foreign direct investment should be the pursuit of technology returns the number of investment strategy(3)considering the host country of the Confucius institute and its regulation(4)make full use of the Confucius institute information channels;The following Suggestions are put forward to the government:(1)broaden the communication mechanism of Confucius institutes in the host country;(2)improve the coverage and density of Confucius institutes in the world;(3)build a two-way feedback channel between enterprises and Confucius institutes to encourage domestic enterprises to seek overseas technological progress.