Spillover Effect Of Foreign Direct Investment

There is a hot discussion on the spillover of FDI in the economics research.Now China has became one of the countries with much FDI in the world.Effectively absorbing FDI is a shortcut for developing countries to develop.Lots of documents indicate spillover of FDI has much relationship not only withthe feature and motivation of FDI, but also the absorbing capacity of localcountry. This paper discuss the FDI spillover on productivity of enterprises ofChina based on the industry section data from the aspect of R&D, humancapital, capital, openness etc. Then the paper test whether FDI has asignificant spillover effect and whether these factors are effective at thisprocess in the industry section of China, further give the mathematicexplanations and reasons, at last we provide the results and suggestions.