Analysis On The Spillover Effects Of The FDI On The Capital Of Henan Province's Industrial Sector

As an inland province,Henan has faster economic growth rate,and the total economic output is growing in recent years.However,the rate of Economic dependence on the external relatively is low,what is not commensurate with The large province with its economic status.Under such an international background,low level of opening up and slowly developing of its extrovert economy is a great obstacle for the economic development of Henan provice.Obviously,Only by achieving a broader,wider field,a deeper level to the outside world,introducting more and more advanced FDI,Henan Province,can achieve faster,higher-quality economic growth.So,the objective evaluation of FDI capital's spillover effects for the industrical sector in Henan technology and by what strategy to attract investment for Henan Province in the coming years and decisions about Henan's overall development model have important theoretical and practical justice.The purpose of this study is to investigate the spillover effects of the FDI on the capital of Henan province's industrial sector and bring about the relevant policy recommendations.Firstly,the relevant literature on the domestic is sorted out,also the conduction mechanism and the factors on the FDI technology spillovers are described and analyzed.Then,we analyze the current situation,development trend and the characteristics of FDI in Henan province.Subsequently,we set up a two-section model to analyze the spillover effects of the FDI on the capital of Henan province's industrical sector,and we find that the spillover effect of FDI is existed,but the labour factor contribution to the growth is low,and the effect is not significant compared to the national average.Finally,this paper conclude the model itself and reflect on the existing problem.Then make the corresponding policy recommendations to the local enterprises and the government.As the direct contacts and the benefit to the FDI,the Local enterprises should pay attention to their own human capital accumulation,make the deepening cooperation with the FDI,and increase the scale;According to local conditions,local governments can formulate corresponding policies to attract high quality FDI,and guide enterprises in the province enhance independent innovation.At present, the Countries take the industry association and technology spillover of capital as the core policy.The policy of Henan province should be changed,and the local governments should emphasize the scientific and technological content,attract the FDI with higher degree and actively promote the FDI of local enterprises and the transformation of local enterprises.