The Research On The Impact Of FDI Technology Spillover Effect To Jilin Province Economic Growth

Since China put reform and open program in practice, FDI in China has experienced a rapid increase .By now, China has been one of countries which attract the most foreign investments. China attracts FDI, on the one hand, in order to solve the shortage of funds; on the other hand, in order to obtain FDI spillover by using FDI. With the development of the world economy, FDI spillover has become an important path of the international technology diffusion. FDI spillover has played an increasingly important role on economy of the host country. FDI technology spillover effect can improve the level of the host country's production technology, so that, it can improve production efficiency of the host country.Jilin Province began to use FDI from the last century 80's, especially since 1985, FDI has grown rapidly in scale. FDI had a great impact on the economy and society of Jilin province. FDI had improved the shortage constraint of capital in Jilin province. Some multinational companies have began to set up branches in Jilin Province, on the one hand, it created employment opportunities; at the same time, it made Jilin Province to adjust the industrial structure . How to make better use of FDI technology spillover to promote the growth of the Jilin economy has become one of the major tasks in the future of attracting foreign investment.In this paper, I will choose a combination of theoretical and empirical research. By reviewing the results of researching FDI spillover domestic and abroad, this paper analyze the channel of technology diffusion and its constraining facts ,and then I inspect the status of using FDI in Jilin province, and I also analyze problems and constraints of the Jilin Province to use FDI. At the basis of theoretical analysis and Combined with the use of FDI from 1985 to 2007 in Jilin province, by improving the Cobb Douglas production function I make the model. After the regression analysis of the model, I get the positive FDI spillover effect in Jilin province; however, this effect is very weak. Finally, on the base of theory and empirical analysis, the paper put forwards the measures and advice to use FDI in Jilin province.