The Analysis On Factors About Difference Of Foreign Direct Investment Technology Spillover Effect In China

With the background of globalization of economy,the influences that Foreign Direct Investment, the main flowing form of international capital, takes on host countries have been paid continuous attention by economists from all over the world. FDI is a synthesis which includes capital, technology, knowledge, skills of management and effective organizational resource etc. FDI Technology spillover effect has been a hotspot in every country. Utilizing the Technology spillover effect ofFDI to enhance the technological levels of domestic enterprises is the important basis of China's policy: to gain technology by sacrificing the markets. So it has much practical meaning to research on Technology spillover effect of FDI in China and to analyze the difference of FDI Technology spillover effect level, during different regions and different industries, for promoting technology progress and realizing harmonious development of regional and industrial economy.From the views of theories of FDI Technology Spillovers effect, taking the influencing factors of FDI Technology spillover effect as the clue, on the basis of analyzing characteristics of FDI distributing in districts and industries, according to the Chinese panel data of 30 provinces and cities and 36 industries from 1999 to 2007, this paper studies FDI Technology Spillovers effect in China empirically. The factors which lead regional difference of technology spillover from four aspects, including investment of scientific research, human capital, economic development, regional economic structure and the factors which lead industrial difference of technology spillovers from four aspects, including industrial technology level, market structure, opening degree, linkage effect between industries have also been analyzed. At last, we put forward some suggestion for how to improve level of using FDI and make full technology spillover effect of FDI based on the research results.The empirical results show that: there is positive FDI Technology Spillovers effect both in most of areas and industries. On the district level, the eastern and coastlands'FDI Technology Spillovers effect is the most remarkable, and it is embodied by competition; the FDI Technology Spillovers effects level of central and western regions are lower, and the spillover is embodied by enterprises learning and imitating. On the industry level, the most of industries have positive FDI Technology Spillover effect, and especially the effect in manufacturing is remarkable. The dominating spillover in industries is competitive spillover. Empirical results through analyzing by grouping show that: In districts, increasing investment of scientific research, human capital level, economic development and infrastructure level, and the Dependence degree of foreign investment will enhance FDI Technology Spillover Effect. But high Dependence degree of foreign trade doesn't improve spillovers through learning and imitating, it improve competitive spillover. The higher ratio of productive value of heavy industry and state-owned economy, the higher level of FDI Convergent Technology Spillover Effect. In industries, the gap between domestic and multinational corporations wide, the convergent spillover which is through learning and imitating has dominant effect; the gap narrow, the competitive spillover has dominant effect. In addition, the R&D denseness degree, market competitive degree, FDI denseness degree, and open degree all have positive relations with level of technology spillover. The research results also shows that: every region and industry should keep increasing FDI, keep improving absorbing capability, and optimize the environment using FDI to boost FDI Technology Spillover Effect and promote regional and industrial harmonious economy development.