Manufacturing Technology Spillover Effect Of Foreign Direct Investment In The Jiangsu Province Empirical Research

Since the reform and opening, because of its good location and the investing environment, JiangSu province has achieved a great success on introduction of foreign investment. A large number of FDI inflowing increases the provincial capital stock and relieves employment pressure. However, its fundamental impact on the long-term economic of our province, which lies in its technological overflow effect. Absorption and utilization of technological overflow effect can increase the technical level, organizational efficiency and management skills, while the economic of our province can be in the growth of the biochemical road. Which technology overflow level of Foreign direct investment in our province is? Reserching on this problem has the important practical significance on making appropriate foreign policy for the government. Based on data of the manufacturing industry in JiangSu province, this paper making some empirical analysis on technology overflow effect, which is for how to gain the better development on the advanced manufacturing industry of our province.This paper reviews on the classical theory about foreign direct investment technology overflow effect and domestic and foreign technological overflow effect empirical literature; makes analysis and generalization on the present situation of foreign investment in JiangSu province and its manufacturing.Secondly, on the basis of qualitative analysis, using relevant data on manufacturing industry of2003-2009in JiangSu province, making a panel data model and using Eviews6.0statistical software, we do the empirical research about the overall overflow condition of the FDI in JiangSu and its Influence factors. The results show that the overall technology spillover effect is significant. The linkage between domestic and foreign enterprise’s technical level and the export-oriented degree the domestic enterprises are important factors on technological overflow effect. The linkage between domestic and foreign enterprise’s technical level difference is bigger, technology spillover effect is more significant; The higher the degree of export-oriented enterprises, technology spillover effect will be even more significant.At last, according to the empirical results, we put forward the following countermeasures from the two levels:the government should make the right position, improve the comprehensive service level; Increase investment in research and development, and promote the internalization of foreign hi-tech actively; create a good market competition environment; readjust strategy to strengthen technological overflow effect. Enterprises should promote their own technology level actively, participate in market competition; improve the human capital level; Strengthen industrial undertake ability, promote association with multi-national company to absorb technology overflow effect better.