Research On Technology Spillover Effect Of Foreign Direct Investment Inflow In China

As a main part of international factor movements, capital helps a lot in China's economic development in a globalization trend. Three features were seen from China's economic progress- firstly, the importance of economic opening increase; secondly, FDI, one of capital flow channels, plays an irreplaceable role in China's economic boom. And thirdly, Technology comes out as the key to economic growth. In a broad sense, technology comes from Indigenous R&D and imitation, absorption from other entity and innovation. So the technology spillover effect could be propulsion to target countries. Based on Open and Development Policy, globalization background, as well as the positive and negative impact on China's economy of Technology Spillover Effect of FDI, this thesis conduct a Panel Data analysis by using Stata Statistical Package on China's regional differences of spillover effect, and come to the conclusion that different regions enjoy different spillover effect. With this conclusion, the thesis analysis the reason of the differences- the factors affect technology spillover both from macroscopic and microscopic view. From those analyses, several suggestions are put forward on how to enhance the ability to Spillover, and how to develop an innovative country to strengthen China's economic momentum and upgrade the living standards of all residents.