Empirical Analysis On Technical Spillovers From FDI On Domestic Firms Of Four Cities In Northeast Of China

With the rapid development of economic globalization, foreign direct investment (FDI) plays more and more important role, especially the increasing influence with the economic growth of the developing country. Since the 1990s, China has become the important host country in the foreign direct investment. After joining WTO, Chinese foreign direct investment still presents the trend of growth along with investment environment's improvement. A large number of foreign merchants have invested in China, distributed in various regions. Whether to have the technology spillover effect which we anticipated, and promote the enhancement of the economical and technical level have gained intense attention.The region of study is the Northeast, the objects of study are four cities (Shenyang, Dalian, Changchun and Harbin). This article examines FDI technology spillover effects of the above-mentioned city-owned industrial sector, as well as the main factors that affect the overflow threshold regression by using empirical tests.First, according to the analysis of literatures, we found that there is threshold effect in technical spillover. This paper uses Northeast four city-owned industrial sector data from 2000~2007, and uses DEA analysis software to calculate TFP malmquist index. Next, make a regression to verify the existence of technological spillovers in the region by using the calculated total factor productivity levels, regional research activities and the utilization of FDI data. The results showed: in these four cities, FDI Technology Spillover Effect does not exist a significant positive spillover, and even some cities in the significant negative effect. Based on the previous empirical test, the study focuses on domestic industrial sector indicators of absorptive capacity, namely, the degree of regional economic development, the degree of regional economic openness, human capital situation in the region and regional economic structure. Then make a threshold regression for the impact of these FDI spillover effects of the absorptive capacity factors. Finally, the author gives the conclusions and suggestions.