The Research On Intra-Industry Technology Spillover Effect Of FDI

Ever since the in the late 1970s China began to attract foreign direct investment, the cumulated actual use of foreign capital amounted to 685.429 billion U.S. dollars at the end 2006. Foreign direct investment not only speeded up China's sustaining economic growth, but also improved the quality of growth. Accompanied by further development of economic globalization, FDI has taken more and more attention and technology spillover effect of FDI has become the hotspot as well.First of all, this paper gave thoughts on influencing factors and inherent mechanisms of technology spillover effect in FDI industry based on existing achievements in this field. Then we made a test on high-tech industries panel data and by establishing model, found out whether it exists or not and how it works if it does. All study in the paper lead to the conclusion that china should not concern too much about quality and scale of foreign capital but focus on scientific management and operation norms instead, especially foreign-funded enterprises which stimulate related industries' development. At last the paper gave specific suggestions on this issue.