Research On Influence Factors Of Technology Transfer Of FDI Of Multinational Corporation

Since 1980s', more and more foreign direct investments have flowed to developing countries, which has played an important role in economic growth of these countries. Along with mass inflow of foreign direct investment, the intention of attracting foreign direct investment of developing countries has changed from making up the shortage of domestic capital to promoting domestic technology progress. The spillover effects of foreign direct investment is an important channel for developing countries to acquire the advanced technology of Multinational Corporation (MNC), more and more developing countries have attached importance on spillover effects of FDI. However, MNC monopolize most of advanced technology and transfer less key technology to developing countries to keep their competitive advantage, which limit the dynamic spillover effects of FDI in developing countries.From point of developing countries and based on the law of technology transfer of MNC, the paper systematically analyzes factors which influence the technology transfer of MNC through FDI from three aspects: micro-aspect, industry-aspect, and macro-aspect. Firstly, we include the technology gap between domestic enterprises and foreign-invested enterprises (micro-aspect factor), the market structure of industry (industry-aspect factor) and the host country's policy of foreign ownership (macro-aspect factor) into the frame of theoretic analysis of technology transfer of MNCs, and explore the mechanism of effects of these factors on technology transfer of MNC and its complexity. Secondly, based on existing related studies, we empirically test the applicability of theoretic analysis and show the importance of these factors on promote technology transfer of MNC to developing countries through case study, econometric analysis and comparative discussion. Furthermore, we discuss the new development trend of these factors and its influence on technology transfer of MNC.Finally, we take Chinese manufacturing as object of our study, particularly explore the development trend of technology gap between domestic enterprises and foreign-invested enterprises, the market structure of manufacturing industries and the policy of foreign ownership, and use panel data econometric models to empirically analyze the influences of these factors on technology transfer of MNC to China. Results of empirical analysis show that these factors have evident effects on MNCs' technology transfer to China, and the effects are structurally distinct in different industries. Based on empirical results and the adjustment necessity of Chinese foreign investment policy in new period, we put forward some suggestions upon how to accelerate technology transfer of MNC to China in order to make better use of FDI to promote domestic technology progress.