The Empirical Analysis Of Technology Spillover Effect Of FDI In Fujian Province

Foreign Direct Investment(FDI) has become one of the important factors that promote the economic growth of the host countrys.FDI not only plays the role of capital accumulation but also effectively makes up the gap of the shortage of foreign exchange and capital for the hosts,especially for the developing countries.More importantly,FDI covers a lot of factors,like the physical capital,human capital,technical knowledge,etc.It not only contains a certain amount of foreign capital, but also contains advanced production technology,management skills and ways to organize these resources effectively.FDI can constantly improve the technological level and organizational efficiency by the way of technology spillover effect,and thereby increase the overall productivity.Accordingly,FDI will achieve endogenous growth of the host's economy.Many scholars have studied China's technology spillover effects from the perspective of the national since the 1990s. However,the overall research is not conducive to understand and analyse the spillover effect of FDI comprehensively.Because there are many differences in attracting FDI among provinces of our country,especially between inland cities and coastal ciyies.Fujian Province,as the frontier province of the reform and opening up,has made great achicvements in attracting FDI.The research of the technology spillover effect in Fujian province will be a great important in improving the local technology level and economic development. In this paper,the method of quantitative analysis is used in the empirical analysis of technology spillovers of FDI in Fujian Province.First of all,the author introduces the situation of the FDI in Fujian Province,focusing mainly on the following five aspects: the scale of FDI,the structure of the sources, regional structures, industrial structures and modes of the entry.Secondly,The author uses the Levin&Raut'idea for reference,and divides the role of technological progress into direct and indirect effects.The author tests the technology spillover effect of FDI in Fujian Province by using the time-series datas from 1979 to 2007. The result appears the existence of technology spillover effect,but the effect is not obvious. Then,the reasons for this phenomenon are analysed.The author finds that the factors ,such as human capital and openness of the economy,don't meet the target of the threshold of technology spillovers.Finally,suggestions are put forward in the hope that they may be some helpful for the strategies of attracting FDI in Fujian Province.