Jiangsu Provincial Foreign Direct Investment And Technological Progress,

The technical progress is an important motivation for the continuous increasing economic growth in either a country or a region. There are many factors contributing to stimulating the technical progress, among which foreign direct invest (FDI) is one which can bring the technical progress of the host country. This paper uses the combined method of qualitative analysis and quantitative analysis to empirically study the relationship between FDI and the technical progress in Jiangsu province, and also the relationship between FDI and each technical progress of the Three Industries in the province. The results show that the long run co-integration relationship exists between FDI and the gross technical progress and the technical progress of the second industry in Jiangsu. However, the empirical analyses indicate that the technical progress of the primary industry and the third industry is not relative to the FDI. And the reasons are considered as following: 1) the FDI concentrates on investing in manufacturing, accounting for over 80% of the gross FDI; 2) the primary industry depends on the natural environment mostly, not any other factors; 3) the service industry in Jiangsu has not opened up entirely, which affects FDI in the service industry and in turn constrains FDI's promotion on technological advancing of the industry. According the above analyses, this paper puts forward several suggestions for the province.