Theory And Empirical Studies Of FDI Intra-Industry Spill-Over Effect On Shanghai Manufacturing Industry

Since 1970s,with the increased opening degree and accelerated opening pace of the developing countries, its purpose of attracting FDI has turned from indraught of international capital to mainly supplement the insufficient construction funds to gain advanced science& technology and management method. However, it has been a particular concern to the government of these countries as how to promote FDI to be a positive spillover effect to them. Among the various levels of study to spillover effects of FDI, "intra-industry spill-over effect" is one branch of much attention. The explore of International scholars on FDI intra-industry spill-over effect in the host country always use "demonstration effect", "the mechanism of competition" and "learning process" as the core. The reason is that the entry of foreign-funded enterprises has brought advanced technology for local enterprises to imitate and learning as well as the pressure of competition to increase productivity through various means to safeguard their existing market. These two aspects can both promote the labor productivity of local enterprises finally.In the process of exploring for decades, scholars have made considerable progress on the internal mechanism of spillover effect, which play a very good role in terms of methods or ideologically to the subsequent researchers. On the basis of abundant research results and formally methods from domestic and foreign countries, this article will on the following routes as Theoretical Research→Model Construction→Empirical Study→Summarizing→Measures and Suggestions. Among which the focus of the theory is to outline the impact of FDI spillover effect, thus reach an idea of the spillover effect of FDI based on this city and to lay a good foundation for the following construction model. Model construction is mainly draw on the basis of other model studies at home and abroad for reference and make corresponding amendments to determine this study mode. Empirical Study will research on FDI in Shanghai industrial enterprises of the industry spillover effect mechanisms on the date of all Shanghai's industrial enterprises in 1996--2006 and the statistics data of the six Shanghai mainstay industries, urban-oriented industries and the high-tech industry in 2002 -- 2006 and to reveal the existence of spillover effect among all of Shanghai Industrial, pillar industries, urban-oriented industries and the high-tech industry. Besides, sample group will be divided by per capital size and by the scale of enterprises to study whether there are differences between spillover effects of different groups and analyze its impact factors. The results shows that spillover effects are significantly different between all industrial enterprises in Shanghai, the urban-oriented industries and the six pillar industries, high-tech industries between the foreign-funded enterprises within the industry. Finally, on the basis of the theoretical research and empirical studies above, summarize and conclusions would be drawn then some countermeasures would be proposed. This article will further enrich the research results of FDI spillover effect, and will have some guidance value for Shanghai to develop more scientific and rational foreign policy and technical innovation policy, which enjoys a strong practical significance.This paper is divided into seven chapters as follows:The first chapter is the introduction. The purpose of the study in this paper,the main contents and significance of the studies will be first introduced; then the research on spillover effect of FDI on the domestic and international literature arguments; on the basis of insufficient research in the past, thus make clear of direction for the efforts of this paper, and the construction of the overall framework as well.Chapter two is to sort out related theory of technology transfer of multinationals, and to make clear of the concept of technical clarification and related theory of technology transfer, FDI.Chapter three is to sort out relevant theories on FDI spillover effect, to track on the course of FDI spillover effect, to know mechanism, overflow channel and impact factors, to identify new ideas based on the city's FDI spillover effect then use the theory of industrial chain to distinguish between "inter-industry overflow" and "intra-industry overflow".Chapter four is to follow the tracks of the model development of domestic and international spillover effects, to use the experience and results from the model at home and abroad for reference, to make associated amendments then put forward the final test model.Chapter five is to make empirical research on all industrial enterprises in Shanghai and its six pillar industries and, on the basis of the overall development of the situation, then to make empirical study on the per capita labor productivity and per capital change of related industries, and tested differences between FDI spillover effect thus determine the related factors which influence spillover effects.Chapter six is to make empirical research of FDI spillover effect on Shanghai metropolitan industry and high-tech industry and, analysis its per labor productivity and capital changes, and in accordance with the per capital size and enterprise scale to use sample groups to analysis spillover effect of FDI to the two major industries.Chapter seven has summarized the whole text, to come to the main conclusions and proposed future research direction for improvement as well.