The Research Of Capital Formation And Technology Spillover Caused By FDI

Since the reform and openness, our country has obtained huge achievement in introducing the foreign investment, which has brought profound influence to the economy and social life. As one of the successful provinces, Jiangsu has some special background in introducing the foreign investment. It wants to take advantage of the foreign capital to develop the non-state-owned economy and transfer the developing track successfully. Large amount of FDI entering into the manufacturing sector in secondary industry, which inevitably bring the influence to the Jiangsu economy.The host economy,especially the developing non-state-owned economy,which will face the most furious competition coming from the foreign operater. Jiang Jingfan(2004) called the two kinds of affection caused by FDI as capital effect and spillover effect separately. The capital effect is that the FDI can crowd out or crowd in the domestic investment. The spillover effect is that the FDI technology spillover effect. The two aspects are connected and influenced each other, and evolve dynamically.The FDI affecting mechanism is analysed firstly, and then empirical research is done to the capital formation effect of the non-state-owned manufacturing which caused by FDI with the cross-section data, time series data and panel data. The conclusion shows: the amount of FDI entering into manufacturing sector is very big and the FDI has crowded out the capital formation of non-state-owned enterprises, and the former policy which paying much attention to the quantity of FDI is not advisable.Then, the mechanism of FDI technology spillsover is viewed, and research is done to the FDI technology spillsover from static and dynamic angles. We find that: The technology levels of foreign-funded enterprises are higher than that of the non-state-owned enterprises. There is a gap between them which forms the premise of technology spillover. As time going by, the gap decreases unceasingly. Froming the static angle, the FDI technology spillover within industry is one importmant way, the spillover coefficients are positive and signifance. The two kinds of spillover between industries have big difference,and the backward connection spillover is positive and signifance and the forward connection spillover is negative and signifance. Froming the dynamic angle, the non-state-owned enterprises are the the better sorption body contrasting to the state-owned enterprises. The technology spillover effects between industries are better than that of within industries. The FDI spillover effects relate much to the proportion of foreign funded capital. It is harmful to the spillover with more or less proportion of foreign funded capital. The better spillover zone is about 15-45%. The total factor productivity of non-state-owned enterprises gains a growth 7.7% per annum. The technology changes are the key element of the growth of total factor productivity. The technology spillover within industry, the forward connection spillover and the backward connection 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 spillovers can promote the pure technology efficiency and the technology spillover within industry is beneficial to the scale efficiency.At last, the final outcome is calculated which caused by two kinds of effects and the relation is studied between FDI and the non-state-owned manufacturing sector in Jiangsu province. The empirical research indicates that FDI promote the output of non-state-owned manufacturing sector indeedly. Under the signifance of 10%, FDI is the Grange casuality to the output of non-state-owned enterprises. FDI can explain the change of variance above 30% and one standard deviation of it can affect the output of non-state-owned enterprises greatly. But the effect will be put into force in the lagging time.The main innovations of the article are in the following aspects: First, a special research angle put to the non-state-owned manufacturing sector which has made up the research deficiency in the past and overcomes the phenomenon of thinking much of the spillover effect but omitting the crowd-out effect in the past time; Second, system GMM is used to get over the bias and discrepancy in the estimation process in the past which used in panel data models; Third, a dynamic review is done to the non-stated-owned manufacturing sector with DEA-Malmquist productivity index method,which can analyses the evolution of the total factor productivity and its decomposition target which caused by FDI within and between spillover in jiangsu province; Fourth, the better spillover zone of FDI technology spillover is probed , which can strengthen the reliability of policy in manipulation; Fifth, many ways are used to study the relation between FDI and output growth of non-stated-owned enterprises,and all the results show that FDI is the importmant reason for the growth and the change of the latter.Owing to the above conclusion, we should adjust the policy of foreign-funded capital and change the policy from the amounts to the quality about it. At the same time, we must make more efforts to aid the non-state-owned enterprises, and quicken the development of key technology, and enhance the ability to absorb FDI spillover technology, and bring local territory advantage into play, and put into the strategy of catching up with and surpass compeititor and wend one abnormal developing road.