An Analysis About Effects Of FDI Absorptive Capability Of China On Economic Growth

The foreign direct investment is one of the most factors of the Chinese economic growth. And it also is the most factor of Chinese technology improvement by absorbing the foreign direct investment technology spillovers. The strategy of"exchange technology by market"made contributions in capitalization, employment, export and industrial structure upgrading of China greatly in past years, on the contrary, the promotion of Chinese self-innovation ability is so slow that there is serious tech-depending in some industry. It is just the reason of the paper to resolve the problem of Chinese economics, the author study the situation of spillovers in China and its factors which affects the spillovers.The author does some positive analysis by quoting a dynamic model to check the situation. The analysis shows that the effect of FDI spillovers in China in the long run is positive, but its coefficient is very small. It is so different with other scholars'results. By study-in the methods of much positive analysis, the author finds that most models are built from the prospective of technology suppliers. But the FDI technology spillovers absorptive capability (FTAC)of host country is very important in the system of FDI technology spillovers. Then the author refers to do some researches on FDI technology spillovers from the prospective of the FDI technology spillovers absorptive capability of host country.Then the essay introduces FTAC and the connotation of FTAC. The essay discusses the effects of FTAC on FDI technology spillovers from the prospective of human capital, infrastructure, R&D, money market efficiency, economical degree of openness, governmental policy of absorbing FDI. The research shows the most indexes of FTAC is positive. In order to enhance Chinese FTAC, China should think much of building modernized infrastructure. The empirical results reveal that the increase of investment in R&D, Chinese FTAC is enhanced distinctly. So when Chinese government draws the policy of R&D, she should go for the balance of self-innovation and technology absorptive, the balance of theory research and application research. It is very important for China to increase investment of education enhances structure of human capital, encourage the employee of MNCs flow to local firm or carve out. Financial market enhances FTAC by giving the innovation and imitation financial support. So the author advises China should deepen financial reform, loosen financial restrict, open financial serve market, reduce government interfere. Chinese IPR strategy should keep up with international regulation, and retionally exert IPR strategy in the frame of TRIPS, should be propitious to incentive the innovation activities. Moderate opening and orderly competition are the two aspects of good market environment for FTAC enhance. Economy opening should keep to the principle of moderate opening, and balance the opening growth effect between short-term output and long-term, and confirm an appropriate opening level.