Multinational Investment In The Chinese Automotive Industry, Technology Spillover Effects Analysis

As a great developing country, China has carried on reform and opening polices to the outside world for many years. And it has been attracting more and more foreign direct investment for our construction in the process of its industrialization. In the past twenty years, the magnitude and scale of FDI is extending continuously. FDI plays more and more important role in Chinese economic development. At present, FDI has already become an important and fundamental part of China's economic development.As far as the auto line is concerned, it is the stanchion and the representative of modern industry of the national economy, and plays an important role in the country's industrialization. The auto line is a capital, technology and labor density industry, which can reflect the country's holistic technology and management level. Its level of development affects not only the development of itself and the correlative industry, but also the advancement of our country's integrative national power in a large degree. In the new situation, much attention was paid on how to strengthen our cooperation with multinational corporations (MNCs) in the realm of auto industry, how to improve the integrative level of the nation's auto line making use of the technical spillover effect of MNCs' direct investment, and how to develop the national auto line's ability of endogenous technology. And all these concern will make my study important with practical significance.On the basis of summarizing correlative theories, the paper has analyzed the technical spillover effect of MNCs' direct investment in auto line, combined with the process and characteristic of Chinese FDI. In the process of analysis, my study has investigated the technical spillover effect from the different view of the whole auto line and the domestic corporations in it. The study shows that the technical spillover effect of MNCs has accelerated the improvement of the technology level of Chinese auto industry, and driven the development of correlative industries. The result of econometric regression also displays that the positive effect of FDI on the whole auto line should be affirmed. However, the spillover effect on domestic auto corporations is not such perfect. In the analysis of this aspect, the study of the technical spillover...