The Effect Of Technological Progress Of FDI On The Industry In Yangtze River Delta

Since the beginning of reform and opening policy, China has executed the strategy of"market for technology"and attract a lot of foreign direct investment (FDI). The large amount of FDI inflow into China has an improve affection to the industry capacity, Human Capital development and the technological progress. Currently, FDI has become an important force in promoting China's industry economic development. Has FDI promoted technological progress of the Chinese enterprise?Currently there are some academic controversies about it. Some scholars believe that the"market for technology"strategy is a failure in our country and the use of FDI has rejected the technological progress; however some scholars think that there is not conflict between the use of foreign capital and our own technological progress. Therefore, the attitude of this paper is that how to view and evaluate the relationship between FDI and technological progress.This paper is mainly discussing the problem of FDI effect on Yangtze River Delta industry and technology progress. On the basis of reviewing some of the related theories which clarifies the Mechanism of FDI effect the technology, we understand all kinds of Strengths and the some of the shortages of using FDI by analyzing the actuality of it. Then through the concrete analysis of model and index, it comes out the conclusion that FDI has an active role to improve the technology progress in Yangtze River Delta, but not to the innovation capability development of domestic enterprises. The actual FDI to China we should attach importance to existing promotion from FDI to technological progress of enterprises, however, more to the increasing restraint.Therefore, the government of Yangtze River Delta should continue to strengthen the opening policy and improve our investment environment actively. We should exploit the good factors and avoid the bad ones in the course of attracting FDI and pay attention to the quantity of FDI. The government should play the more leading role in the technological progress of enterprises. And we should keep the unanimous goal of Yangtze River Delta's economic development strategy and improving the ability of technological progress along with using FDI, and increase Yangtze River Delta's comparative advantage benefit from the open economy.