Economic Development Stages And Technology Spillover Effect Of Foreign Direct Investment

In the past research, there is the big difference among the results of econometric analysis about technology spillover of foreign direct investment (FDI). This paper presumes that the technology spillover of FDI is conditional, and changeable as the economic development. Consequently, this paper deeply studies the system of technology spillover of FDI by the analytical frame of economic development of the host country。Firstly, the author studies the specific characteristics and effect of technology spillover by qualitative analysis, and considers that the economic development stages marked by factors endowment, decide the attribute of FDI and the native absorbing capability. Ulteriorly, by the reciprocity between different patterns of FDI and native absorbing capacity, there will be distinct technology spillover effect. Therefore, the author confers the general developmental law of technology spillover of FDI in the process of economic development. And this argumentation was proved by quantitative analysis that is the econometric analysis of multiple regions in different economic development stage in China. The author proposes that developing host counties/regions should set down their developing strategy and foreign capital policy according to the general development law of technology spillover of FDI, and basing on the domestic situation including economic development. It is a good way to avoid the economic development trap of foreign dependency.