The Technological Spillover Effects Of Multinational Companies And Economy Growth In China

Theory of economic growth tells us that capital, labor force and knowledge are indispensable (particularly knowledge) for an economy to obtain rapid, stable and sustainable economic growth. MNCs carry majority of world advanced knowledge and technique, and they can work as a catalyst to the economy of host countries. Different countries adopt competitive polices to attract MNCs, and further investigate spillover effects of MNCs on corporations of host economies.This paper analyzes FDI technological spillover in China on the basis of theoretical analysis and finds out that FDI plays important role not in capital accumulation effect but in technological spillover effect in China. In the end this paper offers a proposal on improvement of technological spillover in spillover in China.