Theory And Empirical Study On Technology Spillover Effect Of FDI

China has been actively introducing foreign direct investment (FDI) since the 1980s, and has now become one of the countries which attract the largest amount of FDI. Effective use of foreign technology spillover effect is an important means to raise the technical level and strengthen the international competitiveness, but whether we get technology spillover effect from FDI? Which factors influence the FDI technology spillover effect? How about effectiveness in the region and in the industry? What relevant measures can we take to promote technology spillover from FDI? Study on these problems has an important theoretical and practical significance for the assessment of FDI to China's technological progress and economic growth and the right establishment of policies that introduce capital.The author first analyzes the overall situation of FDI inflow in China and the major factors which influence the technology spillover, then studies the FDI technology spillover path, mechanisms and theoretical models after the concept of technological spillover, which lay the theoretical foundation for demonstration test of FDI in China's technology spillover effect. Then the author uses an econometric model, establishes the test equation from the view of region and industry and does empirical analysis of FDI in China's technology spillover effect respectively. The main results show that: (1) From the view of region, FDI in the eastern region has significant technology spillover effect, in the central region spillover effect is not significant, in the western region, FDI has weak impact on technological progress. (2) FDI contributes to eastern region's economic growth significantly, while the economic growth of east and central region helps to attract FDI; the western region's economic growth does not have significant impact on the scale of FDI; the interaction of FDI and local investment in eastern region is higher than that of the central and western regions; the improvement of infrastructure in central and western region attributes to attracting more foreign investment; the marginal role of open markets attracting more foreign investment in central region is larger than that of eastern region, while the western region has not yet occurred the FDI absorption effect results from open markets. (3) From the view of FDI technology spillover effect in the industry, the coefficients of horizontal linkages and backward linkages are significantly positive, and the backward spillover effect is greater than horizontal spillover effect, the forward spillover effect is negative, and not significant; from the view of transmission mechanism of technology spillover channels, the backward linkages produces technology spillover through technical advance, while the horizontal linkages improve productivity through technical efficiency. (4) The backward linkages of general industry improves productivity mainly through technical efficiency, while the backward linkages of high-tech industry improve total factor productivity mainly through technical advance; the horizontal linkages of general industry improve productivity mainly through technical efficiency, while the horizontal linkages of high-tech industry through technical advance and technical efficiency. Finally, on the basis of above study, the author puts forward relevant policies and recommendations that could improve the technology spillover effect of FDI according to our country's actual situation.