The Study Of FDI Technology Spillover Effect On China’s Automobile Industry

In2009, the United Nations Conference on Trade and Development (UNCTD)says the foreign direct investment of the United States is firmly held the top spot,while China has come in second surpassing France and the United Kingdom whichcame in second and third separately in2008. Foreign direct investment in China hasnot only promoted China’s sustained economic growth, but also improved the qualityof economic growth in China. With the further development of the economicglobalization，foreign direct investment receives more and more attention of hostcountries，at the same time, the research on technology spillovers effect of FDI havealso become a hot topic. Automobile industry is an important pillar industry for thenational economy and plays an important role for the national economic and socialdevelopment. At present, multinationals have become a leading force for China’s autoindustry, the domestic enterprises have had to compete with multinational companies.It is necessary for us to scrutinize pros and cons that the FDI has brought about, andthen propose the corresponding suggestion for the sound development of the Chineseautomobile industry. This research is of great theoretical and practical significance.At first, the paper introduces the situation of the theoretical and empiricalresearch on technology spillovers effect of foreign direct investment both at home andabroad. Then, it analyzes the conduction mechanism and influence factors abouttechnology spillovers effect of foreign direct investment. Taking the former studyresults into account, it summarizes the routes for demonstration and imitation, linksbetween manufacturers, competition and human resources flow, and also analyzes thefactors affecting technology spillovers. Next regarding automobile industry of theBohai area as the research object, it demonstrates the development situation ofautomobile industry FDI in this area and the positive influence that FDI has produced;through the establishment of model on the automobile industry in the region, itconcludes that FDI technology spillovers exist；the paper also takes the BeijingHyundai as an example, by the case research form, specifically analyzes the effect ofFDI on the local automobile enterprise’s technology spillovers from the perspective of enterprise’s microscopic stratification. Finally, the paper puts forward thecorresponding proposals on how to make a better use of FDI and expand FDItechnology spillover.