A Empirical Study On FDI Technology Spillovers And Its Causation Factors In Anhui Province

With the economic globalization,the connection between different countries have become more and more close, the movements of goods and capital over the world have become very frequently,which impact the world economic growth and technology advancement profoundly. After Reform and Opening up, foreign investment has flow into China tentatively, by engage into early 1990's, the scale of foreign capital has been growing larger an larger.Now, China has become one of the best country in attract FDI. Based on their global strategy, multinational companies transfer their capital to other countries on their own behalf,but these cross-border fluid capital do impact the industrial development and industrial restructure objectively,which enhanced the technology level and promote the productivity of host countries.As other provinces in China, the scale of FDI in Anhui has expanded rapidly since the Reform and Opening up, especially after China's accession to WTO. These FDI not only provides sufficient fund to the economic development of Anhui,but also promote local enterprises and organizations'technology level efficiency.So how to encourage the FDI spillover effects in maximum and reduce their negative impacts is a practical question,Over these years, with the increase in per capita income and R & D expeditures, the continuous growth of science and education resources, continuous improvement of infrastructure in Anhui province,the absorption of FDI technology spillover in Anhui has got a certain foundation. Then how to consummate these existing conditions and create some more favorable factors, to enhance the absorption of FDI technology spillover effects will become another realistic problem.Based on some trade theory and according to many existing conclusions, this thesis selects Anhui and its related foreign trade partners'economic data from 1992 to 2008. this essay will build a regression model,analyse the the FDI spillover effects in Anhui province and its influence factor. To begin with, according to the theory of FDI technology spillovers, technological progress in a region can be promoted by internal R&D and import or FDI technology spillover. this thesis assumes total factor productivity presents technology advancement, then establishes a regression model to analyze the development of Anhui province capital stock, imports and FDI on the effects of technological progress in Anhui. The results show that FDI has positive effects of technology spillover.According the above mentioned reserch,this thesis sets the flexibility of FDI technology spillover as the variable factor, then builds a regressive model including local economic development,R&D capital stock,openness and human capital to analyze the influence factors of FDI technology spillovers effcts. The result shows that the elaborates of effects of FDI technology spillovers requires a certain level of economic development, R & D capital stock and human capital can enhance FDI technology spillover effects.while,the openness is not necessarly encourage the spillover effects. Under the guidance of such ideas, this essay puts forward some suggestions and corresponding views to the Anhui FDI policies,which maybe provide a theoretical foundation to local government.