On The Spillover Effects Of Foreign Direct Investment

This thesis analyzes the statistical data of 38 industrial categories and 21 citiesbetween 2001 and 2004 with econometric models, and studies the relationshipbetween the spillover effects of Foreign Direct Investment (FDI) and industrialgrowth. The contents of this thesis are as follows:PartⅠopens with the background information on the topic selected, gives areview on prior researches, and introduces research methods to be taken as well as theresearch framework; PartⅡmakes a theoretical presentation on the spillover effects ofFDI, including the development of the theory on the spillover effects, the spilloverchannels and the influential factors leading to the spillover effects; PartⅢand PartⅣconduct analyses of the statistical data of various industrial categories and urbanindustrial statistics of Guangdong respectively, and test the degree of FDI spillovereffect on domestic-funded industries and relative influential factors; PartⅤcomes to ageneral conclusion and provides the relevant government departments with somepolicy advice.The results of the empirical study indicate that: (1) the test results of thestatistical data of various industrial categories and urban industrial statistics ofGuangdong are consistent: FDI has positive spillover effects on the growth ofdomestic-funded industries, which is especially salient among industrial categories; (2)in the course of FDI spillover in Guangdong, competition effects are quite prominentwhile agglomeration effects have been partially achieved as well; (3) the spilloverbetween industrial categories is rather limited, which is closely connected with theindustrial framework of Guangdong and the low relevance among industrialcategories; (4) a review of urban feature differences in groups reveals the positivecorrelation between several factors (e.g. the local level of human capital, the intensityof overall investment for research and development, and the infrastructureconstruction level) and the spillover effects of FDI. The impact of the marketopenness degree on the spillover effects of FDI is not as conspicuous as expected.