A Study On The Influencing Factors Of FDI Technology Spillovers In Anhui Province

This paper took Anhui Province as study object, explored the effectof influencing factors of FDI technology spillovers, including humancapital, market opening degree, local R&D investment, industrializationlevel, infrastructure situation, on technology spillovers. The thesisintroduced the development and current situation of FDI in AnhuiProvince, explained the mechanism how corresponding elements affectedFDI spillovers theoretically, and studied their effect empirically. Based onthe model concerning FDI technological progress and economic growthput forward by Borensztein et al in1998, this paper used the data inAnhui Statistical Yearbook from1995to2010, using interaction terms ofFDI etc. as explanatory variables, economic growth rate as variable beingexplained, to conducted empirical study in EViews by least squaresmethod. It was found that senior and middle level human capital couldboth improve FDI technology spillover effect, and the former played amore important role than the latter. As one of the indicators of humancapital, positive function of government expenditure on education wasvery significant as well. Among other factors, local R&D investment andindustrialization level’s impact was positive, market opening degree wasnegative, and infrastructure situation didn’t make a significant impact onFDI technology spillover. At last, to summarize the analysis and researchabove and make policy recommendations.