Study On The Technical Spillover Effects Caused By The New Trendency Of The FDI Technology Strategies For The MNC

Foreign direct investment (FDI) is a hotspot for mangy scholars in and abroad to research the technology spill-over effect of FDI of Multi-national Corporations (MNC) in china. Objective evaluation of FDI's spillover effects has important theoretical and practical justice for the developing countries' technical progress.The purpose of this study is to investigate the spillover effects of the new strategies in China and bring about the relevant policy recommendations. Firstly, the relevant literature on the domestic is sorted out. Then by the review of historical process of bringing in FDI, it is shown that since the 1990s FDI has maken great contributions to technical progress and industrial optimization. Yet there are some new strategies, such as exclusively foreign-owned investment, nativization of the R&D organization, strengthening technical control and so on, gradually emerges. Combined with the practical situation of FDI, this paper analyzes the new strategies changed by MNC, we pick out the most representative characteristics to make a game theory analysis and study the deeper reasons of the transition of FDI for MNC. This paper uses panel data model to analyze 1998-2007 exclusively foreign-owned investment to the industrial sector spillover effect allover China. This preliminary empirical analysis comes to the conclusion that the spillover effects are not significant. Also found by this analysis is that the lag effects of significantly FDI technology spillover. Then we study the spillover effects in China from 1980 to 2007 brought by FDI. Then we make an empirical analysis on effects on technical progress in China based on the panel data comparing with domestic R&D stocks with FDI. The empirical results have been summarized that, FDI has a promotion effect objectively.Proved by the empirical study, the real source of technical progress is the domestic R&D investment. Finally, suggestions are put forward to improve the technical progress. The suggestions are that domestic enterprises should strengthen their ability of independent innovation and the absorbency to advanced technologies in order to expand the effect of the foreign capital's technology spillover and promote the technique improvement of our country.