Jiangsu Province, Fdi Technology Spillover Effect

The effect of Foreign Direct Investment on the host country or local place, particularly technical spillover effect, has been the academic focus of the study over the years. Meanwhile it is greatly concerned by government departments and enterprises for it is the important channel to obtain advanced production and management technology. However, empirical studies showed that technology spillover effects have yielded great differences, even a negative spillover effect, in different countries and regions. Despite in the same economy, the differences of technological spillover effects in different industries are also very great. In recent years, Jiangsu Province has set a good example in the foreign capital by virtue of its excellent geographic conditions and economic environment. Attracting FDI and using the spillover effect of FDI are gradually becoming the leading factor for technological progress and economic growth. In addition, the unbalanced development of economy in different parts of Jiangsu (South Jiangsu, Middle Jiangsu and North Jiangsu) has caused the uneven distribution of FDI technology spillovers effect in the three regions.In this context, the study of industrial sector in Jiangsu Province as the research object, the first of the classical theory of FDI technology spillovers, and FDI technology spillover effect at home and abroad to discuss the relevant empirical literature review and sort out, from the FDI distribution of the industrial structure, mode structure, regional structure and other aspects of the status of FDI in Jiangsu province using a comprehensive summary and conclusion, and then select the 13 cities of Jiangsu Province, the industrial sector and its sub-industry data for the years 1999-2008, the establishment of panel data regression model, using Eviews statistical software to do technology spillover effect study, from regional and industry levels of the FDI in Jiangsu Province.The results show that, FDI technology spillover effects are positive in the three regions of Jiangsu Province. In different regions, FDI technology spillover effects are obviously different in owned industrial enterprises. From the study we can find that FDI technology spillover effect in the Soviet Union is the most significant, followed by southern Jiangsu and northern Jiangsu is the least. From the industry level, foreign-funded industrial sector has significant positive spillover effects. And we can find that the higher opening up domestic companies smaller degree of technology gap between domestic and foreign enterprises and more intense market competition, the more FDI-funded enterprises in Jiangsu Province technology spillover effect.Empirical studies for the results, the following countermeasures are made along two levels of government and enterprises: Government departments should attract investment strategy to create highly competitive market environment according to local conditions and further improve the technology enterprises within the province competitiveness, addressing the actual situation in different regions of the province. At the same time, enterprises also must strive to improve the technical level, and actively participate in the competition, emphasis on human capital development, strengthening cooperation with multinational corporations to accelerate FDI technology spillover.