Technology Spillovers Via FDI In China

In recent years, the study of FDI spillovers in developing host countries has received increasing attention. Since multinational corporations are inventors of advanced technology in the world, FDI spillovers is one of the important ways for developing countries to attain technology. Besides, the more advanced the technology is, the more difficult to be attained, so promoting FDI spillovers is especially important for developing host countries.Studies show that spillovers from FDI are not automatic consequence of MNCs presence in host countries, and many factors influence the incidence of spillovers. So it is important to find systematic patterns of the incidence of spillovers in order to promote the incidence of spillovers.With the rapid FDI inflows in China, this paper tries to answers the following questions:Is there the incidence of FDI spillovers in China? Is there any difference between the regression result from intra-area data and that from intra-industry data? How to explain it?Does the quality of FDI influence the incidence of spillovers?Does the different area development levels influence the incidence of spillovers? What are the deep reasons? How to develop further analysis?What are factors influencing intra-industry spillovers? What are the deep reasons? Does spillovers from competition between local firms and foreign affiliates exist? and in which industry?From above study, can we attain some suggestions? How to analysis the way to improve FDI spillovers? What are the key factors?What is the role of host government in FDI spillovers promotion? What should FDI spillovers promotion policy include?With qualitative and case analysis, this paper answers all of the above questions.This paper includes 4 chapters.Chapter 1 "FDI spillovers review" introduces main FDI spillovers theory, the role FDI spillovers for endogenous increase of developing host countries, recent studies of others, and put forward the author's theoretical understanding of the mechanism of spillovers incidence.Chapter 2 is "empirical analysis of FDI spillovers incidence in China". First, this chapter introduces the technology transfer behavior of multinational corporations in China. Second, this chapter uses intra-area and intra-industry data to analysis the incidence of FDI spillovers in China. Third, this chapter explains the different regression results with inter-industry linkages between MNCs and their local supplier sand subcontractors in the same area.Chapter 3 is "empirical analysis of influence factors of FDI spillovers in China". First, this chapter analyses the influence of the quality of FDI in spillovers incidence. Second, this chapter analyses the influence of different area development levels in FDI spillovers incidence. Third, this chapter analysis the influence of technology gap in FDI incidence. Finally, with case study in manufacturing sector, this chapter analysis the influence of competition between MNCs in the local market in FDI spillovers incidence.Chapter 4 is " FDI spillovers promotion". First, this chapter concludes how to promote FDI spillovers, and puts forward that the key factor is to promote spillovers from competition between MNCs arid local firms. Second, this chapter analyses the role of host government in spillovers promotion. Third, this chapter puts forward some policy suggestions.