The Study On Spillover Effects Of Introducing FDI Into Chinese Mainland's Flat Panel Display Industry

Foreign direct investment (FDI) has exerted profound impacts on china's economic development for 30 years since Reform and open. But scholars' make different conclusions on the FDI spillover-effects. Chinese mainland Flat Panel Display industry is deeply impacts by FDI. It is very important for us to understand the role of FDI correctly by selecting Flat Panel Display industry as the research object.On the base of reviewing and summarizing a number of relevant theories and literatures, the thesis analyzes FDI spillover-effects of Flat Panel Display industry from 1995-2007 using methods of TFP-test, case studies, and SWOT analysis.The study in the thesis builds a model based on Cobb-Douglas production function and shows that the index of spillover-effects to the entirety industry is 0=-0.4520 through regressing analysis, the index of domestic company spillover-effects isη=-0.2429, this data shows that FDI damaged to the entire Flat Panel Display industry and domestic company both.The case studies approve the above conclusions. By analyzing the case of SVA-NEC company and jing-orient Company, further proofed that FDI don't enhance the core competitiveness of the industry, but weaken the sustain-developing to the industry. TNC FDI into China not only captured the mainland "market" but also weakened the ability of industry sustainable development. The thesis explores the reason of spillover effects of FDI was negative, and further explores the transmission mechanism and the overflow path of FDI.The thesis makes a full SWOT analysis to the industry and gives some industry development policy suggestion on that basis.