An Empirical Research On FDI Technological Absorptive Capability Of China

Foreign Direct Investment (FDI) is one of the most factors of the China economic growth. FDI made contributions in capitalization, employment, export and industrial structure upgrading of China greatly in past years, on the contrary, the promotion of Chinese self-innovation ability is so slow that there is serious tech-depending in some industry. The topic how to improve the FDI Technological Absorptive Capability (FTAC) of China is very interesting in the two aspects: theory and reality.This thesis mainly researches on the relationships between FTAC and determinants. At first, it probes into the basic theory and analysis method, secondly construct the proxies system of FTAC, finally put these proxies into the regression model to test the relationships between FTAC and determinants and gain some valuable conclusions.The research shows, as the basic condition of FTAC, the gradually enhance of infrastructure is very important for China to improve FTAC. In order to enhance Chinese FTAC, China should think much of building modernized infrastructure. Also important factor is R&D. its structure and strength influent the FTAC and self-innovation of China. The empirical results reveal that the increase of investment in R&D, Chinese FTAC is enhanced distinctly. So when Chinese government draws the policy of R&D, she should go for the balance of self-innovation and technology absorptive, the balance of theory research and application research. The third important factor is human capital. The improvement of FTAC depends upon the accumulation, good structure and efficient flowing of human capital. It very important for China to increase investment of education, enhance structure of human capital, attract student abroad back to carve out, encourage the employee of MNCs flow to local firm or carve out. Of course, all of these need efficient policies and fair exert in these policies.The research also shows, the environment factors also are very important for Chinese FTAC. One of the important factors is financial market. Financial market enhances FTAC by giving the innovation and imitation financial support. So the author advises China should deepen financial reform, loosen financial restrict, open financial serve market, reduce government interfere. Especially financial market should give greatly financial support on the firm's technology imitations, technology absorptive and innovations. Another important factor is the intellectual property right (IPR) protection. The empirical test proves the lower level of IPR actual protection limits the improvement of FTAC, and the main cause is the low level of executing the IPR law. Chinese IPR strategy should keep up with international regulation, and rationally exert IPR strategy in the frame of TRIPs, should be propitious to incentive the innovation activities. The third important factor is the market mechanism: opening and competition. Moderate opening and orderly competition are the two aspects of good market environment for FTAC enhance. Economy opening should keep to the principle of Moderate opening, and balance the opening growth effect between...