Research On The Effects Of Technological Spillovers From Different Characters Of FDI In Manufacturing Industry Of China

Along with the process of globalization, foreign direct investments (FDI) have become more and more important in developing countries, as a win-win strategy to attract foreign capital. Especially for the capital reception countries, the inflow of FDI not only impulse the economic growth, but also bring advanced technical and management experiences into the host countries. Scholars studied these phenomena and defined FDI technology spillovers effects. Although the FDI spillover had been wildly accepted theoretically, the results of empirical study are ambiguous. The empirical result of FDI spillover is much difference of different characters.This paper will start with theoretically analysis try to set up a theory frame of FDI spillover about different characteristics of foreign direct investments. Firstly, we introduce the mechanism of FDI spillover. Then we illustrate the FDI characteristics in China with Descriptive statistics. Described the situation of FDI in manufacturing in detail.The statistical result is that the marjory of FDI in China is low-tech and labor-intensive foreign investment. Illustrate the mechanism of capital inflow under these different FDI characters, emphases on the effect of different characteristics of FDI upon the activity of different type of economic entities. The analysis shows that the FDI of different characters have different technology spillovers effects. The result of our empirical study shows that technology-intensive FDI have positive effect on TC of domestic enterprises;The labor-intensive FDI have no obvious or even negative influence on FDI spillover of domestic enterprises. Base on both theoretical and empirical study, we provide some references angles for the improving technological promoting mechanism in order to make full use of FDI spill over in China.