Research On Technology Spillover Effect Of Foreign Direct Investment

A large volume of foreign direct investment (FDI) has been flowing into China since the opening and reform policy was executed. FDI inflows promoted China's capital accumulation and played an important role in China's economic growth. However, China did not realize the desire to enhance its own technology level by the FDI strategy of "make technology by market". It is doubtful that FDI has technology spillover effect. Based on the domestic and overseas relevant research and the game theory model, this thesis studies the theories of FDI technology spillover effect from investment country and host country systematically. By case studies of China handset manufacturing and automobile manufacturing, this thesis finds the key factors which affect FDI technology spillover effect and forms the chart of FDI technology spillover effect system. Finally this thesis gets the general idea and detailed advices to extend FDI technology spillover effect in China.