A Research On Reverse Spillover Of China’s Outward Foreign Direct Investment

In recent years, many developing countries develop foreign direct investment in the developed countries, expecting to obtain the advanced technology of the developed countries, and to improve their own capacity for independent innovation. China is the largest developing country, the rapid development of outward FDI has aroused the upsurge of China’s foreign direct investment on China’s technological progress.In this paper, do research about the reverse spillovers of China’s foreign direct investment, absorptive capacity and technology gap are taken into consideration. Build an endogenous growth model to prove the impact that the absorptive capacity and technology gap to reverse spillovers of technology. In the empirical part, we use knowledge-driven endogenous growth model to deduce the classic international R&D spillover model, and make an extension. Then we make use of provincial panel data to exam the reverse spillover effect of China’s outward foreign direct investment. Finally, we has made several policy advices to the development of China’s outward foreign direct investment.After theoretical analysis and empirical analysis, we draw some conclusions:1. there’s a reverse spillover of technology of China’s outward foreign direct investment; 2. absorptive capacity has an effect on the reverse spillover of technology, the greater the absorptive capacity, the stronger the reverse technology spillovers.3. The technology gap between the two countries can affect reverse spillover, when the technology gap is medium, the reverse spillovers is strong.4. Domestic R & D investment plays a key role in promoting China’s independent innovation ability.