Regional Differences And Panel Effect Of Technology-Seeking OFDI Promoting Domestic Technological Progress

Technological innovation plays a decisive role in national long-term economic development, which is also an important power source for a country to keep the sustainable development of economy. China is in the stage of absorbing FDI and OFDI, FDI played a huge role in promoting for our country’s economic growth, with OFDI growing fast, In order to get advanced technology for motivation, some of multi-national enterprises embedded foreign research populated areas, using of integration of local technical resources, which is possible to improve our country’s technological innovation? Because there is big difference between China’s eastern, central and western regions in economic development level, human capital level, openness and the orientation policy, it has the important theoretical significance and practical significance to discuss the difference of reverse technology spillover effect for OFDI on different areas, and to explore the reason for the difference of our country, to promote local economic development and technological innovation.Based on the above context, this article first measure TFP for all provinces, then through the theoretical analysis we get that if OFDI can bring positive reverse technology spillover effect mainly lies in whether to overcome the "threshold value". Only cross the corresponding "threshold value" can reverse technology spillover effect be successfully achieved to promote the domestic technical progress. Then, based on R&D spillover regression model by Coe and Helpman, combined with the actual situation of China, using PCSE, an empirical analysis is carried out by testing the data of OFDI from eastern, central and western region of China during2003and2011to test the reverse technology spillover effect of OFDI of each. It is shown that the reverse technology spillover effect is in existence in eastern and central but not western region and the whole country. Introducing the nonlinear panel threshold model to accurately grasp the accurate "threshold value" for OFDI. The threshold panel data approach provides further conclusion that the regional differences mainly result from the magnitude of OFDI. Based on the above study, this article reveals the basic research findings in the last chapter, and brings forward constructive policy recommendations to promote intensive and sustainable development for OFDI in China and to promote independent innovation. Combined with the actual situation of China, enterprises in our country should "going out" to developed countries to invest for getting advanced technology, for the technological innovation for our country.