An Empirical Analysis Of The Technical Spillover Effect Of Foreign Debt

In the background of world economic integration, foreign debt serving as an important form of international capital movement, plays a significant role in China's social and economic growth. However, researches on foreign debt mostly focus on the management system, reasonable scale and structure, and the prevention of risk, etc., and thus neglect the empirical analysis on the technical spillover effect of foreign debt. This paper is based on the practical analysis of China's foreign debt, that is, the scale, structure, and the potential risk, and then theoretically analyzes the technical spillover effect of foreign debt, including its mechanism, channels and constraints. The key part is to construct an econometric model, and apply related data to empirically analyze the technical spillover effect in China. The result shows that, the direct technical injection effect is so significant that it greatly promotes China's technical progress. While the technical spillover effect is positive but not so significant through the combination of higher educated labors, because of the relatively low level of China's human resource. Besides, the impact of foreign debt on technical progress is also restricted by its own structure, international trade, openness level, and the market environment, etc. Finally, according to the whole research, the paper makes an overall conclusion and proposes some useful suggestions on how to enlarge the technical spillover effect and how to raise the management level of foreign debt.