| Nowadays, the technological progress has already become the criterion to estimate the competitiveness of every country all over the world. At the same time, many economists begin to study "technological progress" in theoretical and empirical research. According to the New Growth Theory, the technological progress, an important factor of economic growth, is dependent on scientific and research inputs. However, in the open economic, R&D expenditure of other countries will also affect domestic technological progress through many channels, mainly including Foreign Direct Investment(FDI) and International Trade.After 1997, the technological progress of Chongqing is notable. Of course, the self-innovation is the main reason. Besides that, the international technology spillover also played an important role. So, this paper will testify the effect of Foreign Direct Investment technology spillover on the development of technology in Chongqing through theoretical and empirical research methods.The paper is divided into six chapters as follows: chapter one introduces the background and the aim of the research, gives the emphases and difficulty in this paper, and summarizes the content of the research; chapter two constructs a frame of theoretical analysis about Foreign Direct Investment and technology spillover, which introduces the meaning and the determinants of the effect of FDI technology spillover; chapter three analyzes the present situation of FDI and technological progress of Chongqing, and draws a preparatory conclusion; chapter four is the empirical study by using the modern econometric analyzing methods, which confirms the presence of the effect of FDI technology spillover in Chongqing; chapter five makes some suggestions on maximizing the effect of FDI technology spillover in Chongqing; chapter six summarizes the conclusions in the research.On the basis of the above research, this paper draws main conclusions as follows: l)Self-innovation is the engine of technological progress in Chongqing. The empirical research demonstrates that self-innovation can directly promote the total factor productivity of Chongqing, and also directly promote it through affecting the FDI technology spillover; 2)FDI plays an important role in the technological spillover in Chongqing, which offers a solid support for corporation to expand FDI; 3)the ability of acceptance to technology spillover which is dependent on research inputs and human capital has a great impact on the effect of FDI technological spillover in Chongqing; 4)To maximize the effect of technology spillover ,this paper makes some suggestions: Increase the inputs of R&D to establish a solid basis for technology spillover.This paper summarizes theories about technology spillover through referring to many literatures, and analyzes the present situation of FDI by using the contrast method of graph and table. In the empirical study, this paper expands and modifies the existing C-H model through including the penetration rate of FDI, and testifies the presence of FDI-related technology spillover through comprehensively using econometrical analysis such as time series and Granger causality. |