Empirical Research On FDI Inter-industry Technology Spillovers In Manufacturing Industry In China

In the wave of economic globalization leading by multinational corporations, as the carrier of the technology transfer, foreign direct investment has become an important way of improving the technology innovation and promoting economic growth in most countries especially in the developing countries in the world. Since the reform and opening up, foreign direct investment has been growing rapidly. FDI has promoted technology innovation and the growth of the gross industrial output in the manufacturing industry in China.From1990s, FDI technology spillover effects have been concerned by domestic scholars in China. Previous studies focused on the intra-industry spillover effects, with the development of the theory of industrial relevance, more and more scholars put their eyes on the inter-industry spillover effects. Based on the previous research, this paper described the inter-industry spillover effects by the theoretical and empirical analysis. On the theoretical analysis, we discussed the effect and generation mechanism, including characterisitic, the process elements, channels and the influencing factors. On the empirical analysis, we establish econometric models to examine the inter-industry spillover effects from FDI with using industry panel data of14manufacturing industries in China for the period2001-2010. Then, we test the technology gap and human capital on the inter-industry technology spillover by constructing the multiplicative variables.The measurement results show that:there are intra-industry and inter-industry spillover effects in manufacturing industry in China, and the latter has more significant spillover effects than the previous; the relationship between technology gap and inter-industry spillover is negative correlation; the human capital and inter-industry spillover are positively correlated.On the basis of the above conclusions of the study, we give six policy recommendations for promoting the FDI inter-industry technology spillover:(1) to improve the investment environment and increase the FDI guide strength;(2) to optimize investment entities and improve the industry association between multinational companies and domestic enterprise;(3) to develop the supporting enterprise and enhance the industry cluster effect;(4) to improve the technology of products in order to narrow the technology gap with the multinational companies;(5) to improve the level of human capital to improve the absorption capacity;(6) to enforce of intellectual property protection system and strengthen intellectual property protection.The innovation of this paper includes two aspects:on the view, we research the inter-industry technology spillovers with the perspective of the industry association; on the method, we empirical test the influencing factors by constructing multiplicative variables.