The Influences On Technology Progress Of The Homeland From The Outward Foreign Direct Investment Of China

With the development of economic globalization, we will witness the increasingly close relationship between China and the rest of the world. This phenomenon shows that more and more Chinese enterprises go outward to invest in foreign countries as well as these native companies has also attracted a great amount of foreign investment every year. Based on the fact that China is increasingly becoming the big source of foreign direct investment, this article will analyze the relationship between OFDI and Technology Progress through theoretical and empirical analysis. Finally, we will provide some relevant suggestions for policy-making.Looking back to the theory of OFDI separately in developed and developing countries and the empirical analysis on the relationship between OFDI and technology progress in homeland, the article work on the system that how OFDI influence the technologic progress in homeland.By the means of collecting the information of some companies and doing some research with them, the article has found that one of the motivations of OFDI of the Chinese enterprise is to learn advanced technology and management experience from developed countries. Furthermore, the article will analyze some other influences that OFDI has acted on homeland economy. We will also provide some suggestions in policy-making according to the problems we have met in investing in foreign countries.