China 's OFDI Reverse Technology Spillover Effect And Technological Progress

In recent years, China’s foreign investment policy is gradually from focusing on the "Introduction" to "bringing in" and "going out",itself gradually become one of the most important emerging economies and foreign investment power in the world.In the world of FDI receiving country top ten, the developing economies accounted for five.And China has become the ranked first country in the world to receive FDI.China urgently expect through international trade comparative advantage,participating in the international division of labor to achieve rapid economic growth.ASEAN,as one of the world’s major economies,from the beginning of cooperation framework signed with our country in 2009,both sides will be engaged in gradually frequent cross-border investment activities.The two sides jointly build "The twenty-first Century Maritime Silk Road",opened up a channel for China’s foreign trade, accelerate the flow of funds, and create a good prospects for economic exchanges between Chinese and ASEAN.The traditional researches on improving domestic technology through the external access are mainly focused on foreign direct investment, influence factors of the investment.Compared with numbers of researches on FDI,researches on technological progress effects of OFDI are not much,and most of researches are using the data of developed countries.And exploration of effects of reverse spillovers of technology from our country to developing countries in China is almost blank and lump together the difference of country-specific OFDI technology reverse spillover effect in ASEAN without classification discussion.Based on the above background, this paper selects the ASEAN countries as the research object, discusses the OFDI technology upgrading of our country,and on this basis, explore the effect on reverse spillover of technology.Then puts forward the research direction of this paper:the mechanism of China’s OFDI to obtain technologyspillover of the host country,what role does the technology spillover of ASEAN play in domestic technology development, how to promote the progress of science and technology through OFDI.In theoretical research, this paper explore the mechanism of reverse technology spillover of OFDI on the development of science and technology from direct and indirect channel of spillover.Direct spillover can be divided into two major technical resources:Access to research results and R&D resources.Research results can directly benefit technological innovation and progress,and R&D resources can indirectly provide advantage for the enterprise. Both of them on the one hand make the enterprise to overcome the defects of exotic identity,on the other hand,research results and R&D resources of the enterprise absorbed can in turn serve home market providing more quality products and services with the core competitiveness.Indirect spillover mechanism mainly involves the development of feedback and incentives,cost sharing mechanism and imitation, the global value chain division mechanism.By means of the above indirect spillover mechanism, new products, new technology,new technology, new design of foreign subsidiaries will feedback to the parent company to improve R&D level of parent company;Through overseas investment,parent company set up R & D branches in foreign countries,taking advantage of preferential policies provided by investment recipient countries to reduce spending on R & D and allocation of cost.Foreign subsidiaries get closer to the leading technology,having chance of using for reference and learning more high-tech;Parent company is also clear about company’s position in the global value chain,therefore accumulating competitive power and achieve economies of scale.In the empirical research,using the reverse technology spillover effect of OFDI to ASEAN countries to build the model.Using unit root, cointegration, error correction, and so on Granger causality test methods to analysis scale of the reverse technology spillover effect of new members of ASEAN and the old member from an empirical point of view.The conclusions are as follows:(1)The stock of domestic R &D play a positive effect on TFP(total factors productivity) on behalf of thedevelopment of science and technology.(2)The old members of ASEAN OFDI spillover effect has a significant positive impact on the technological progress of China,more than new members.(3)domestic capital stock is the Grainger reason of the progress of science and technology, it is also the Grainger reason of other members of technology spillover. The greater domestic capital stock is, the power to promote the technological progress of China is stronger.Finally, according to the above research conclusion, from two angles of the government and companies are given the relevant strategies.