Foreign Direct Investment, Technology Spillover Effects Of Regional Differences In Point Of View

Nowadays, globalization has been an irreversible trend. In this wave, whether the traditional trade that the substance is the main flooding factor, or the higher-grade factors such as labors and capital, have made an unprecedented development. Foreign direct investment has been the sounding evidence. FDI dominated by multinational corporations has been the main stream of the contemporary economic development, and the most obvious characteristic of the globalization. China is the developing country absorbing most FDI. The FDI has made very important and profound impact through many aspects, which include capital effect, technology spillovers effect, industrial upgrading effects, trade creation effects, employment effect and so forth. This article, dividing China into three parts:the eastern, the central and the western, focused on the regional differences of technological spillovers made by FDI, which not only helps us know the role that FDI brought to Chinese technological progress more comprehensively and objectively, but also give better advice that how to attract FDI to make its technological progress according original differences. All of these would benefit China to improve the efficiency of FDI, not only increase the amount.This article mainly focuses on the technological spillovers effect brought by FDI to China, dividing China into three parts:the eastern, central and the western. First, it made an exhaustive description and amylase on the phenomenon of FDI and technology of three different parts. Second, it made use of panel data model, according three original panel data from 1997 to 2007, and made Hausman test, F test and Fixed Effect regression respectively to get the conclusion. Then compare the original technological spillovers differences though four paths, namely, demonstration effects, competition effects, correlation effects and the talent flow effects. The result showed that FDI just made a little technological spillover effects in the eastern, while it had the negative effects in the central and western. Meanwhile, only the eastern had demonstration effects, competition effects and correlation effects, but the the talent flow effect is not significant in our country.At last, this article gave relative suggestion according these four spillover effects, which include that strength the introduction of appropriate technology to play a demonstration effect, make market competition system to play competitive effect, promote the construction of related industries to play correlation effect, and improve the talent incentive mechanism to play the talent flow effect.