Research On Spillovers Of U.S. Direct Investment In China

Great achievement has been made in China in terms of attracting FDI since its reform and opening-up, and people also focus on the impacts of foreign investment on China's economic and social development more and more. The spillover effect of FDI in China and its impacts on China's economy has been the key issue in academic circles nowadays. The dissertation chooses U.S. FDI in China as target, and emphatically study how its spillovers happen, transfer and affect China's economy. On the basis of analysis before, the dissertation summarize the characteristics of spillover effects of U.S. FDI in China that are different from those of total FDI in China.First, the dissertation analyses the features of FDI in China since reform and opening-up briefly, and on the basis of them, some empirical analysis are made, which are on the impact of spillover effects of FDI in China on economic growth, domestic investment and industrial structure. The empirical results show that penetration of foreign capital obviously affect the long-term economic growth of China, however it doesn't affect domestic investment remarkably. The influences of foreign capital on China's industrial structure are mainly including that enlarging the structural deviation of the three industries, speeding up the course of highly processing in China's industry structure, etc.Second, after analyzing the characteristics of U.S. FDI in China in detail, the dissertation explores how the spillover effects of U.S. FDI in China influence economic growth, domestic investment and industries upgrading. The results of research indicate that U.S. FDI in China obviously affect China's economic growth, but it's different from the impact of total FDI in China; like the total impact of FDI in China on domestic investment, U.S. FDI in China doesn't affect domestic investment remarkably either; the impact of U.S. FDI on China's technological progress and industrial structure is mainly the driving-effect stemmed from it's advanced technology and management mode. Moreover the dissertation discusses some factors that influence the spillover effect of U.S. FDI in China, and makes count of them through two-department model. The results of count show that the combination of economic openness and human capital have the largest impact on the spillover effects of U.S. FDI in China, and the index of domestic enterprises'technology which reflect absorptive capability also have positive effect on them.Finally, on the basis of theoretical and empirical analysis, the dissertation elaborates the particularity of spillover effect of U.S. FDI in China. In the view of the path and mechanism of spillover-effect, U.S. FDI in China makes positive impact through all the paths of demonstration-imitation, linkage and personnel turnover effect ,but through competition path, its spillover effect is found inferior. As for the industries that are influenced by spillover effect, hi-tech industry is the focal industry where there is positive spillover effect; knowledge intensive services is the potential industry that produces and take advantage of spillovers from U.S. FDI in China; however, the lack of spillover effects to domestic firms appears in such industries where there are too many monopoly enterprises.