Empirical Studies Of The Technical Spillover Effect By FDI In Jiangsu

From reform and opening to the outside world, a lot of foreign capitals poured into Jiangsu province. . What about the technical spillover effect of FDI in Jiangsu province? The discussion to this question has great meaning for us when making proper FDI policies.The effect of FDI to the host country or area, especially the technical spillover effect to the host country, has aroused great care of both theoretical field and governments. This technical spillover effect is regarded as an important way to get advanced producing and managing technology of those MNCs. However, empirical researches to different countries and area show that, difference exists between the spillover effects to different countries and area, in some countries, negative technical spillover effect even exists. This article makes empirical studies on the spillover effect of FDI to Jiangsu province by using a lot of statistics from Jiangsu industrial departments. The paper first reviews and combs the classical foreign capital technology spillover theories and the related empirical articles about FDI technical spillover effect; generalize the developing situation of FDI in Jiangsu including industrial and regional distribution structure, the source and entering mode of FDI.Then we analyze the technical spillover effects the Jiangsu Province overall and inter- industrially from the industrial aspect. Discussion shows that: overall Jiangsu Province technical spillover effect is low, we consider the low linkage degree between MNCs and domestic companies the main reason; inter-industrially FDI create more technical spillover effect, but its contribution to Jiangsu domestic companies is lower than capital and labor elements. Further discussion shows that, to inter industry: the gaps of technology and sales scale between domestic companies and MNCs is smaller, the technical spillover effect is more. Based on above empirical research, this article carries out policy advice to promote FDI to create more spillover effect from the view of enhancing competition and raising linkage degree.