A Research On The Effect And Influence Factors Of Reverse Technology Spillover Of OFDI

Since the new classical growth theory revealed that technological progress was the source of economic growth,economists' interest in technological progress is more and more strong,and even to some extent people's research interest in technological progress is more than economic growth itself.Since Romer found endogenous growth theory,economists carry out continuous research on the source of technology progress.Generally speaking,a country's technological progress not only depends on the input of it own direct factors,but utilizing the externality of technology,and acquiring technology spillover are important channels to promote technology progress,especially for relatively backward countries in technology included in China,acquiring international technology spillover is more important.The main channels of the international technology spillover popular in academic circles include international trade,the flow of personnel,attracting foreign investment,etc,with the rapid development of international direct investment,especially"Parallel Investment" among the developed countries and "Reverse Investment" among the developing countries,the reverse technology spillover of outward foreign direct investment OFDI has attracted more and more attention of economists as a channel to acquire international technology spillover.This article is based on the real conditions of the rapid development of China's OFDI in recent years,and makes an exploratory research on the possibility and influence factors of acquiring reverse technology spillover for China's OFDI.The content of this article mainly contains:First,through a simple extension of an endogenous growth model,we try to reveal the mechanism how the reverse technology spillover of OFDI promotes technological progress of homeland.Through analyzing a sample model including two countries,N kinds of intermediate inputs as well as two enterprises,this paper found that,relative to attracting foreign investment and acquiring intermediate products through international trade,developing foreign direct investment and producing intermediate products in foreign for domestic enterprises is more targeted,which improves the efficiency of intermediate products,and promotes the improvement of its final products' technology more effective than other channels of international technology spillovers.At the same time,equilibrium analysis finds,the effect of reverse technology spillover of OFDI is interacted by Homeland's human capital,R&D investment.Under the condition of Homeland's OFDI invariable,more investment of Homeland's human capital and R&D investment can strengthen the reverse technology spillover effect;while the reverse technology spillover is interacted by the technology gap between home country and host country.Under the condition of homeland's foreign direct investment scale invariable,greater technology gap contributes to reverse technology spillover stronger;finally,the technology gap between home country and host country is interactive with home country's absorptive capacity.When the other conditions remain unchanged,greater technology gap tend to produce the reverse technology spillover,but it also put forward higher requirements on its absorption ability.The empirical study by Cross-Country Panel Data study also supports this conclusion.Second,by using the panel data and panel cointegration techniques,this paper makes an empirical study on the effect of Reverse Technology Spillover's absorption ability on reverse technology spillover.The empirical results show that indexes of human capital,R&D investment,infrastructure and financial development for measuring the absorption capacity of the reverse technology spillover has a strengthening effect on Reverse Technology Spillover,when the home country foreign investment scale doesn't change,these indexes have a positive contribution to the technological progress of homeland.Meanwhile,the nonlinear regression result finds,reverse technology spillover has"threshold effect" on the home country technology progress,namely when the country absorption ability reaches the "threshold",reverse technology spillover will promote technological progress of homeland,otherwise the effect won't appear even negative.Finally,the empirical results show that technology gap between home country and host country is not "bigger is better",the greater technology gap is more likely to produce reverse technology spillover,but the larger technology gap needs stronger absorption capability to adapt it,or home country is difficult to absorb the reverse spillover,then the"advantage of backwardness" couldn't be played very well.Third,based on the research idea"from the general to the specific",this paper applies the general rule to the actual situation in China,and conducts an empirical study on reverse technology spillover of China's OFDI.Based on the reverse technology spillover perspective,this article carries out international comparison on China's OFDI.The result finds,China's OFDI on the whole haven"t owned the condition to acquiring reverse technology spillover,it is mainly manifested as foreign direct investment in small scale,unreasonable choice of foreign investment industry,unreasonable target location,state-owned enterprises's foreign investment ratio too high and the lack of enterprise internationalization management experience etc..The empirical study according to China's provincial panel data also shows,China's OFDI in general has not shown the effect of reverse technology spillover.But the regression results in different regions,this paper finds that the eastern region of China's OFDI has produced significant reverse technology spillover effect,which indicates that the regulation of reverse technology spillover is applicable in China.Based on the empirical result,the paper preliminarily judges that this result is caused by the lack of absorptive capacity of China.Using similar indexes of analysis of international experience as proxy indicators of the absorption capacity,the empirical study result finds,our country's absorption ability on the whole haven't met the requirements of reverse technology spillover.Besides the opening-up degree,human capital,R&D investment,financial development and technical infrastructure are positive contributive to the effect of China's reverse technology spillover.Fourth,about the factors that influence the reverse technology spillover of China's foreign direct investment,this paper extend them from the domestic to the host country perspective.Through the study of empirical cross-country data,this paper selects the host country's human capital,R&D investment,intellectual property protection,degree of openness,efficiency of government and technology market size as proxy indexes for the host country's location characteristics.The empirical study result shows,among those selected China's host countries for foreign direct investment,those emphasizing on human capital accumulation and R&D investment are more significant to our country's reverse technology spillover.In the system environment,more stringent protection of intellectual property in the host country is helpful to China's technology spillover;the higher efficiency of government in the host country is helpful to our country's technology spillover;the host country's perfect technical market mechanism is helpful to our country's technology spillover;while inconsistent with our expectation,the opening-up degree of the host country doesn't make positive contribution to our country's acquiring reverse technology spillover.Finally,based on the above theory and empirical study,the paper proposes a lot of policy recommendations to acquire the reverse technology spillover and improve our country's technological progress,such as enhancing policy support for the technology souring FDI,enhancing our ability to absorb technology,a reasonable choice of China's OFDI target location and the coordinated development of "going out" and "bringing in".