Study On Technology Spillover Effects Of FDI In Shanghai Industry

Recently, both domestic and foreign scholars have been focusing their studies on FDI spillovers. The previous studies have found that FDI was a synthesis which included capital, technology, knowledge, efficient resource allocation and organization management etc. It can also help the domestic industries to improve their technology, organization efficiency, total-factor productivity. It will lead to the transformation of the domestic economy patterns.As a developing country, China has achieved great accomplishment in absorbing FDI since 1978. As one of China's main financial centers, Shanghai is an important area to attract international capital and support global industries movement. Indeed, foreign capital has already influenced Shanghai economy deeply. And how to use foreign capital has become a tough problem. With Shanghai as the study area, this paper does an empirical test of technology spillovers and gives the corresponding policy and measure recommendation.This paper can be summarized as the following two aspects:In theory, the FDI and technology spillover theories are reviewed firstly, to clarify the connotation and extension of the technical spillover effects to present the spillover of the basic approach and impact of technological spillover effects related factors; And then I introduce the relevant reach methods and results of the domestic and foreign scholars on technology spillover effects of FDI. Finally, according to the data in the Statistical Yearbook over the years, this paper summed up the using situation of FDI in Shanghai over the past decade, analyzed the amount of foreign investment, industry characteristics, investment method, foreign sources in Shanghai, so as to make foundation for doing empirical research and proposing follow-up policy recommendations.Empirically, this paper uses the existing researches and builds econometric models. This paper mainly treats Shanghai's industrial sector as the research object and inspects the spillover effect relationship of the FDI in Shanghai's industrial sector. The study indicates that the impact of FDI is to promote Shanghai's industrial sector technological progress is not so significant.Finally, on the basis of the above empirical study, some relative policy suggestions are put forward in this thesis.