FDI Spillover Effects Of Technical Analysis Based On Sichuan's Economic Growth

With the continuous economical development and openness of China, there is more foreign direct investment (FDI) flowing into China. The impact of FDI on economic is said to be positive, and FDI always bring technological spillover effects to the host country. However, this positive conclusion is based on a whole country, not a certain region nor a certain industry of one country. Thesis from regional view is rare. So the paper observes the impact of FDI to one region- Sichuan province.This paper divides into three parts: The first part mainly says the research results about spillover effects, and concludes the main factors which product spillover effects. Secondly, this paper sets two models in the light of Cobb-Douglas production function, one of which is to test whether the use of FDI brings technological spillover effects to Sichuan province, the other is to calculate the contribution rate of FDI in three major industries and observe whether it brings technological spillover effects to the industry.The third part proposes some policies and measures for government to improve local economic development conditions and environment to maximize the technology spillover effects of FDI, which serves to promote local economic development and improve the level of local business management and production skills.