Empirical Analysis Of Foreign Direct Investment In Technology Spillover Effects

With the rapid development of technical and economic globalization, foreign direct investment (FDI) plays more and more important role in the globalized tide of the Multinational Corporation. At the same time, FDI has the increasing influence with the economic growth of the developing country. In addition to increase the capital storage, to improve the quality of investment and to alleviate the employment pressure, the long-term and radical influence of FDI to the country is the technology spillover effect about the FDI.Since the 1990s, China has become the important host country in the foreign direct investment. After China 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. Whether to have the technology spillover effect which we anticipated, and promote the enhancement of the economical and technical level have gained intense attention.At first, this paper has settled the achievements in scientist research about the foreign direct investment to the host country. Then, this article has analyzed the FDI technology spillover situation from Chinese FDI condition. Finally, through the endogenous economic growth theory to construct the econometric model, the paper has had an empirical analysis on Chinese FDI technology spillover effect using co-operation theory and panel data in the model. The main conclusions are as follows:Firstly, the foreign direct investment has promoted China technology advancement. But the foreign direct investment has promoted the technology advancement relying on own enhancement of the productivity, and has not the technology spillover effect. Chinese FDI technology spillover effect is not remarkable.Secondly, the foreign direct investment has effectively promoted Chinese economical growth. But the function of the foreign direct investment mainly presents on the effect of the capital accumulation, is not on the technology spillover effect. The level of Chinese human capital is the key aspect of restricting the technology spillover effect.