FDI Spillover Effect On Chinese Domestic Enterprises ——A Perspective Of Spatial Distance

With the increasingly frequent flow of international capital,foreign direct investment(FDI)has gradually established a key position in the world economic development,and its spillover effect in the host country has long become a hot topic in academic research.However,most of the existing studies on FDI spillover effect ignore a key factor--spatial distance.According to the First Law of Geography,“All things are related to other things,but things that are near are more related to things that are far away”(Tobler,1970).The key mechanisms of FDI,such as competition,demonstration and imitation,and agglomeration effect,are closely related to spatial distance.Such spatial distance difference affects every relevant enterprise at any time.This paper studies the spillover effect of FDI from the perspective of spatial distance,and raises the following questions to be solved: Will the spillover effect of FDI on China's domestic industrial enterprises change with the increase of the distance between domestic and foreign enterprises? If such a change exists,does it have a maximum or minimum threshold as the distance between enterprises increases? What are the mediating mechanisms that contribute to these phenomena? This paper will try to explore and study the above problems,analyze the corresponding mechanism and carry out empirical tests.Using China's industrial enterprise data and Baidu map API,fetching and accounting firms such as latitude and longitude location information,internal respectively adjacent about 5 km distance between the foreign capital enterprise,inter-city distance,about 50 km and 200 km of provincial distance on the corresponding empirical analysis respectively,to a certain extent,expanded the spillover effects of FDI research Angle.In this paper,on the basis of relevant research literature,after the introduction of space distance factor should spillover effects of FDI space multidimensional characteristics,the mechanism of combined with the characteristics of the spatial distribution of FDI and domestic enterprises,established in FDI spillover effect to domestic enterprises space of the three core performance-total factor productivity,innovation and management as the research object.Using DID model,effectively identify the FDI entry and exit,and the empirical analysis for different distances away from the domestic industry,the spillover effects resulting from the same industry enterprises,and the three steps of intermediary effect analysis method,and examine the competition,demonstration,imitation,agglomeration,such as mediation mechanism,in order to measure these mechanisms in different distance dimensions of differentiation.Innovation of this article lies in the following aspects: one is the innovation of the research Angle of view,after collecting and organizing of the related literature,finding china-specific "FDI spillover space" problem research does not see more,and because of a lack of specific to enterprise point coordinates of latitude and longitude information,most of the literature in the Angle of the provincial,city and other regions,and the substitution of relevant cost for distance weighted factors or distance,which is a rare precision to different mileage range spillover effects of FDI space influence conclusion.In this paper,Baidu Map API was used to calculate the longitude and latitude information of each enterprise in the database of Chinese industrial enterprises,and the distance between each group of domestic and foreign enterprises was calculated.The research perspective was accurate to the distance between enterprises,which expanded the research boundary of FDI spillover effect to a certain extent.Second,innovation in the analysis of the mechanism of action,because the research perspective of this paper is specific to the distance between enterprises,so as to more accurately measure the influence of each intermediary mechanism in different distance range,and proposed that agglomeration is also the key intermediary mechanism of FDI affecting domestic enterprises,which is rarely seen in previous studies.3 it is the innovation of the research methods,this article in the form of double difference accurate identification for foreign companies to enter and exit,and be able to greatly alleviate the linkages between endogenous problems,a more accurate measure of FDI on surrounding different distances within the scope of the impact of domestic enterprises,the study precise on spatial spillover effect to point-to-point space distance between enterprises,the method also can extend to other studies.The main conclusions as follows: First,FDI spillover effects on domestic enterprises will be increased with the increase of the distance between the domestic enterprises and foreign enterprises to change,the spillover effect of the change is not only is the change from strong to weak,but because of different mechanism in different distance from the role of different and change,and has effective influence on FDI spillover effects of limit,to the boundary and TFP to the enterprise,innovation and management have different impact.Specifically,the effective distance of TFP of domestic enterprises affected by FDI is more than 200 km,but it has gradually weakened.However,enterprise innovation and management are only significantly affected when the distance is within 30 kilometers from the foreign-funded enterprises.The spatial spillover effect of FDI on domestic enterprises will be persistent,and its influence will spread from the center to the periphery as time goes by.Second,the above phenomenon is the outcome of combined action of multiple mediation mechanism,competition,demonstration,imitation and agglomeration in the distance between the different enterprises of explanation is different,the influence produced by its with distance change intensity also has difference,within 5 km distance of adjacent,competition mechanism and demonstration imitation mechanism will show strong influence,and in provincial distance of 200 kilometers,the effect of agglomeration mechanism began to reflect.Third,the spatial spillover effect of FDI on domestic enterprises of different regions,different enterprise scales,different export scales and different ownership is of great difference.Finally,based on the research conclusions and the basic national conditions of China,this paper puts forward the following three policy implications: to guide foreign-funded enterprises to choose their location in China reasonably,to build complementary domestic and foreign-funded industrial spatial layout,and to assist domestic enterprises to break through the shackles of spilt-over neighboring dependence.