Chinese Ofdi Reverse Technology Spillover Effect

In the condition of economic globalization, international capital flows widely. As a large of FDI has been imported, much of China's MNE started to go out to the world, and the amount of China's OFDI is increasing. Some of the MNEs are ought to pursuit technology transfer through OFDI. In this capital flowing environment, this article will analyze the effect of OFDI reverse technology transfer from both theoretical and empirical ways on the basis of analyzing the motive of technology pursuit, and finally provide some suggestions for firm's or the government's policy-making.Shed the light on the literature and the analysis of OFDI theories, the paper take Cournot model to analyses how could the MNE with lower level productivity invest in the county with higher level productivity get technology improved, with the model determining the factors that may affect the technology transfer. Then the current status of china's OFDI is studied, and compared the scales by the region, country, and industry from a higher level. In the empirical analysis, employed knowledge-capital model to test whether there exist knowledge pursuit OFDI, and then used the knowledge spillover model to analyses the reverse spillover effect, and compare the different between east, middle and west region of china.The results are as follow:first, there is existing knowledge-pursuit OFDI, especially in developed country. Second, OFDI have positive effect to each region's TFP or patent. Third, there are differences between different regions, as east region have higher absorptive ability.Based on the result above, this paper gives some suggestions:first, enlarge the scale each region's OFDI. Second, change the industries clusters invested. Third, invest in the developed country more to run after the technology. Forth, enlarge the inner R&D input. Fifth, balance the FDI invested in china, give more ratio to west and middle region of china.