Technology Spillover Effect Of FDI Based On Absorptive Capacity

FDI spillover effect has been studied widely in the field, but it does not just depend on FDI itself. Named the condition absorptive capacity by scholars, the basic conditions that host region owns also has deep influence on it. We think that absorptive capacity includes infrastructure, human resources, R&D capacity, market system and financial market development. We summarize the mechanism how absorptive capacity affects FDI spillover effect on the basis of the early researches, and find that the basic factors play a role in the FDI spillover effect through special ways. Then, we use an empirical model to certify the mechanism on the basis of the data of Jiangsu province. The results show that the basic factors of absorptive capacity take on high relevance with FDI spiilover effect in the selected period, and human resources, R&D capacity, market system affect the effect obviously, but the tradition part of the infrastructure does not act as what we expected. In the end, we offer the corresponding suggestions on the basis of the empirical results.