A Research On The Impact Of Inter-Industry Spillover From FDI On Productivity In Manufacturing Sector Of China

Served as an important force to promote social and economic development, Technology are attracting more and more attention. The researches of FDI spillover find that the effect of intra-industrial spillover is not significant; it may squeeze out domestic enterprises. So many researchers turn the research stress to Inter-Industry Spillover. Now, China has been one of the biggest countries which attract foreign investment. And the affect of Inter-Industry Spillover act on economic development in Industry is becoming the research hotspot. So this paper studies the impact of inter-industry spillover on productivity in manufacturing sector of China.Previous research stress on the interrelation between technology spillover and GDP, but this paper pays attention to the impact of spillover effect on productivity. Firstly, the paper calculates the productivity using Malmquist Index based on DEA. Then, the paper studies the impact of inter-industry spillover on productivity in manufacturing sector by panel data model coming from Cobb-Douglas function. And it test the effect based on panel data from 1999 to 2009.Finally, it test the impact of industrial structure on technology spillover effect in groups.The conclusion shows as follows:Inter-industry spillover has positive effect on the improvement of productivity in manufacturing sector, and forward spillover is more significant. The results of regression in groups based on exporting tendency show the impact of exporting tendency on inter-industry spillover is not significant. The result of regression in groups based on technological level show different group has different transmission mechanism and effects. Intra-industry spillover is only significant in high-tech industries and backward spillover is more significant in ordinary industries. Forward spillover operates through the improvement of technological efficiency in high-tech industries and it acts through technological progress.In order to make full use of the effect of inter-industry spillover, the paper makes the following suggestion:1) Distinguishing different types of technological spillover, and enhance the guidance of inward FDI.2) Enhancing the relevancy of industry 3) Encouraging research, and improve the autonomous innovation ability.4) Improving knowledge level and skills of labors in order to enhance the absorbing capacity.