The Study On The Export Spillovers Effect From FDI To Domestic Firms In China

China has become one of the most important destinations of FDI flows into in the world since reform and opening up,because of the implementation of a series of preferential policies and the gradual improvement of investment environment.FDI has become one of the most important factors which affect Chinese economic development.As far as its effect on the development of Chinese foreign trade is concerned,it has played a key role in taking full advantage of comparative advantage to participate in international division of labor and expanding export volume.The rapid expansion of Chinese export mainly based on rapid increase in foreign-invested firms.Judging by the proportion of their export in Chinese total export,they are the main sources and promoters of Chinese export.At the same time,the export entity of Chinese foreign trade also became dual structure of foreign-invested firms and domestic firms at the result of FDI flows into,so it is not enough that only pay attention to the direct effect on Chinese total export from foreign-invested firm’s export themselves.It is well known that FDI has directly and indirectly double effect on host country.It is inevitable that FDI has an indirect effect on domestic firm’s export in the structure of export entities leading by foreign-invested firms,which it is called export spillovers effect.It is more important for the sustainable development of foreign trade that expands the export volume and export competitiveness of domestic firms in a country,so it is more practically significant that studies the export spillovers effect which FDI has on Chinese domestic firms.The export spillovers effect is an externality of FDI to domestic firm’s export,because FDI changes the factors which affect domestic firms’ export.A lot of factors can change firm’s export,so the mechanisms of export spillovers are diversified.For example,technology spillovers,promote market competition,export information spillovers,labor mobility,the demand for production factors,industry clusters and so on.Meanwhile,the export spillovers effect of FDI is not immutable.Its effect depends on not only the factors of foreign-invested firms and domestic firms but also macroeconomic factors in host country.The export spillovers effect of FDI is heterogeneous among countries,domestic firms of different industries and the same industry in a country.As far as the export spillovers effect from FDI to domestic firms in China.According to the panel data of high-tech industries,the empirical analysis on the effect of the export spillovers mechanisms on the export of domestic firms in China shows technology spillovers effect and market competition effect can promote the growth of the export of domestic firms,however the increase of the export of foreign-invested firms has a negative effect on the export of domestic firms.This indicates the effect of export spillovers mechanisms on the export of domestic firms in China is heterogeneous.According to the panel of 33 industries,the empirical analysis on the effect of FDI on the export volume of domestic firms in China shows FDI promotes the expansion of the export volume of domestic firms,but the effect on different innovation ability firm is different.The promotion effect of FDI to the export volume of higher innovation ability firms is larger than to lower innovation ability domestic firms.In addition to the effect on the volume of domestic firm’s export in host country,FDI can also has an effect on export competitiveness of domestic firms by affecting production cost,product quality,the product reputation in international markets and increasing export diversification.Therefore,it can also affect the export quality of domestic firms.The study on the effect of FDI on export competitiveness of domestic firms in China shows FDI contributes to the improvement of overall export competitiveness of domestic firms,but it is not conducive to the improvement of export competitiveness of domestic firms in labor intensive industry,and it also promotes the improvement of export competitiveness of domestic firms in capital and technology intensive industry significantly.This paper argues that we should take the following measures in order to utilize effectively positive effect and avoid adverse effect.Rationally adjusting the policies of utilize FDI and further improving investment environment in order to improve the level of FDI,increasing finance support to the export of private firms and mitigate its finance constraint,perfecting market competition mechanism and preventing foreign-invested firms from monopolizing Chinese markets,deepening the reform of personnel and salary system of domestic firms to provide better conditions to the introduction of talents,further strengthening industrial linkage between domestic and foreign-invested firms...