The Research Of Technology Spillover Effects Of FDI To Shanghai Manufacturing Industry

The effects (especially the technology spillover effect) of Foreign Direct Investment (FDI) to the host country or area have been very hot topics in the academic world for many years. The technology spillover effect has also aroused great attention from both governments and companies, because it's a very important way to get advanced producing and management technology from the MNCs. However, a lot of academic empirical researches show that, the spillover effect varies so much in different countries and areas, where negative spillover effect even exists. Even in the same area, there are also great different spillover effects in different industries.Shanghai has got a great number of FDI for almost 30 years since the reform and opening to the outside world, which results in the rapid development of the social economy. Shanghai has been developing advanced manufacturing industry in recent years, aiming to upgrade the industry and technology. Based on a great many of materials and data, this paper researches on the technology spillover effect of FDI to Shanghai, hoping to help with the development of advanced manufacturing industry.Firstly, this paper reviews the theories and former researches of the technology spillover effect. Secondly, it talks about the situation of FDI and manufacturing industry in Shanghai.With panel data, the paper presents the empirical studies on the spillover effect of FDI to Shanghai, also tells the influencing factors to the effects. This paper also talks about cases of car industry and the MNC, which shows more details of the spillover effects. At the end of our analysis, we give some advice to both the government and the local companies, hoping to promote the technology spillover effects of FDI.