An Empirical Analysis Of China’s FDI Technology Spillover Effect

Since the1980s, under the impetus of the reform and opening-up, China has actively introduce foreign direct investment (FDI), and has the most amount of the actual using of FDI among the developing countries. How to explain why attracting FDI, a number of scholars proposed the traditional two-gap model from the perspective of technological progress; For China’s economy, the backward technology and low production efficiency of it brought out the "technology gap", the entry of foreign capital can make up China’s technology gap. FDI can bring about the technology spillover effect for the economic of development host country, especially when many of the advanced technology can not be technology transfer by multinationals, is particularly important to use the technology spillover effect form FDI to develop domestic technology. FDI technology spillover effect is not spontaneous, it is influenced by many factors, to explore the conduction mechanism of FDI technology spillover and promote the technology spillover of FDI has important practical significance for developing countries. The technology spillover effect form FDI have a certain effect on macroeconomic. In the past ten years, foreign direct investment had a tremendous impact on the Chinese economy, such as increased employment, and improved the overall quality of labor, optimized the industrial structure, promoted the level of urbanization, these are not just simple investment, but rather the result of the increasing of productivity. The research of the technology spillover effect form FDI is very important for Scale introduction of FDI spillovers for FDI, the selection of the project and how to overcome the negative effects of FDI. Many empirical results show that there is a two-way relationship between FDI and the host country’s economic growth, foreign direct investment affect the development of the local economy, the local level of economic development, such as residents’income and consumption level, the level of production technology, human capital accumulation, infrastructure, economic openness, geographical location and the natural environment will also affect the technology spillover effect form FDI. It requires that when we establish the policies, we should pay attention to the interaction between them, in this way, they will promote each other in virtuous cycle.The question about if the technology spillover effect form FDI makes a positive impact on China’s technological progress, and whether there is a positive technology spillover effect, in theory, is still a lack of study of its internal mechanism. The degree of impact of FDI spillover effects on different industries may be different, the impact of the technology spillover effect of FDI from different countries may be different, too. The empirical results for many of the above problems are different, so the answers to these questions have important theoretical and are practical significance, this is also the research object of this article. The paper is divided into six chapters:The first chapter, to introduce research object and its background, the method of research, related research literature about the application of the article, and concluded that the main content of the article and framework. The second chapter, theoretical analysis of FDI technology spillovers. From five aspects:the development of FDI;the connotation of FDI technology spillover effects; the characteristic of the technology spillover effect form FDI; the transmission of, the technology spillover effect form FDI;Finally the theory of Empirical Analysis on FDI technology spillover effect. The third chapter, the empirical analysis of China’s total FDI technology spillover effect. First, selection of models and data, including the theory and formula.And empirical analysis, finally get the result. The fourth Chapter, empirical analysis about different source of FDI technology spillover effect. Observed the diversity of technology spillover effect from different FDI.The fifth Chapter, to sum up the entire contents of the article and give policy recommendations.