Empirical Analysis On Spillover Effects Of FDI In China's Food Industry

Since the reform and open, large amounts of FDI has invested into various industries in China besides China's food industry. As the enlargement of amount and scale of FDI, a lot of researchers at home and abroad has paid much attention and analyzed the effects of FDI to the amphitryon from different aspects. All of the researches have studied direct effects concerning FDI on the basis of related economic indexes from the aspects of investment, trade, employment and so on. However, they haven't run on the indirect effects, especially the systematical analysis of FDI to technological advancement. Therefore, this paper is going to study the effects of externality combining with the features of China's food industry by virtue of the empirical analysis.Furthermore, this paper is trying to find out the gap between foreign investments enterprises through the analysis of output structure, capital structure, the distributing of employees and the profit structure. And then the research hypotheses will be tested by virtue of the input and output data and some preliminary results will be obtained linking with the analysis of channel of technology overflow.It is concluded that the FDI technology overflow effects are not significantly positively correlated in food manufacturing industry of China's food industry. While some positive correlations exhibit in food manufacturing industry and beverage industry. At last, some reasons concerning with this phenomenon will be given in this part.The writer thinks the seasonal materials and demands in some sub-industry can contribute to the industrialized production difficultly. Moreover, the products of food manufacturing industry has been in the primary period, has low technology contents, and exists disparities between domestic and foreign companies, so that the overflow of FDI cannot be absorbed entirely by the domestic companies. This paper concludes that the domestic enterprises of food manufacturing industry have high comprehensive quality, technology gap between domestic and foreign enterprises becomes narrow, and the competition is serious, thus contributing to investment of new technology and production arts and crafts, in order to keep the competitiveness, while domestic enterprises need to absorb the R&D fruits from foreign enterprises, so as to improve the ability of self-development. Therefore, the foreign investment has accelerated the development of China's food industry. Through the analysis of change of employees' structure of beverage industry and the profit structure, it comes the results that lots of the domestic enterprises have been closed from 2001～2005. And the remaining exhibit the high comprehensive quality and little technology gap, so the overflow effects of FDI in this industry exist apparently.