An Analysis Of The Spillover Effects Of FDI On The Electronic Industry In China

FDI mainly makes technology spillover and promotes technology upgrading process of the host country by the effect of human capital, inter-effect of the enterprise value chain, effect of simulation and competition from market. At the same time, the choice of FDI's geological location which usually shows a high degree of industrial clustering patterns is strongly influenced by the industry's clustering factors, but spatial concentration of different industries will effectively promote the innovation of new product and process, and will promote the proliferation of new technologies, strengthen development of Tacit Knowledge among firms, enhance the technology level of enterprises.In this paper, the first Chapter gives the background and significance of this article. China has maintained its position as the largest FDI recipient in the developing world for many years, this will become an important factor for evaluation China's FDI policies depends on whether FDI promote our industrial technological progress.The second chapter reviews the classic theory of FDI technology spillover and relationship with industrial cluster. By summarizing up the history of technology spillover and industrial cluster theories and reviewing the quo status of empirical research at home and abroad, the paper analysizes the mechanism of FDI technology spillovers from a prospect of industrial clusters.The third chapter, by exploring inner meaning of spillovers investigates the FDI spillover mechanism and also investigates the effects of industrial clustering to technology innovation and the spillover. Industrial clusters strengthened the host country's absorptive capacity in many ways, including the specialized division of labor, enhancing human capital, the competition, so as to increase the levels of FDI technology spillover effects.The fourth Chapter takes the China's electronic industry as analyzing example, because the FDI technology spillover effect may be different at different sectors, it is necessary to assess the effect at different sectors. We review overall and industrial features of FDI in China's electronic industry, discusses effects of the relations of FDI and industrial clustering to technology spillover in quantitatively and qualitatively aspects. Qualitative conclusions point out that the FDI of China's electronic industry is promoting the technological progress at the macro level, and the regional concentration of related industries also support point of technological innovation of enterprises.Some conclusions and suggestions are given in the fifth chapter.