Technology Spillovers Via FDI In China: An Empirical Study On Electronic And Information Industry

China has brought in FDI during the past twenty years. After China's access to WTO, China's absorption of FDI goes to a steady stage. FDI advance technology by two ways: direct effect and indirect effect. Direct effect functions by enhancing producing elements. Indirect effect functions by technology spillovers. This paper discuss on technology spillovers.After reviewing theories of FDI technology spillovers in host country, this thesis analyzes FDI technology spillover effects on China's electronic and information industry through an empirical study, since it is one of the most active industries in attracting foreign direct investment in China. And the results show that R&D activity by foreign enterprises can not significantly enhance the technical level of domestic firms within this industry. The reason for the result is that multinational corporations control advanced technology and local corporations can not get them; Our R&D investment is not enough so that our technology absorption is weak; Our structure of market is unreasonable for us to learn form multinational corporations. In the end, policy suggestions on how to better utilize and expand FDI spillovers are presented against poor technology absorption of our domestic enterprises..