The Analysis Of Technology Spillover From Foreign Direct Investment In China

Strategically, FDI is encouraged and expected to benefit domestic firms' technological capability and competitive competence via technology spillover from last two decades. Therefore, there is one significant and interesting question need to be answered, that is ,whether our expectation has been realized ,to what extent ,and how?This study focuses on the FDI technology spillover mechanism and affected factors in china. It consists of five parts. Chapter 1 illustartes the background and the significance of this paper and then presents the framework for this study based on classifying relative theory. Chapter 2 analyses three key variables which affect FDI technology spillover. they are thchnology distance, effective linkage and absorptive capability. Chapter 3 analyses the effect from FDI technology spillover in china. And then ,using the co-integration method and error correction model (EMC) investigates the long term trends and the short term influence of FDI macroscopicallyon China's total factor productivity(TFP) .Using panel data model examines the mechanism of FDI technology spillover in China's hi-tech industry .Using the OLS model examine the affection of trade policy mechanism on FDI technology spillover as a complement. Chapter 5 provides some relative suggestion about how to improve the FDI technology spillover based on the before-mentioned research.Investigating FDI technology spillover effect from macroscopic,microsopic,interior and exterior aspect integratly is the main innovation of this study.We get the conclusion from above-mentioned research: Firstly , the technology gap between foreign and domestic enterprises is only the prem isecondition but not the necessary condiition for FDI technology spillover in china. secondly,The FDI presence does benefit China's TFP growth,but the magnitude is statistically insignificant. Thirdly, FDI technology spillover exists conditionly. Fourly, FDI brings on a small degree of technology spillover which affected by trade policy and mechanism to domestic enterprise.