Analysis About China’s FDI Technology Spillover Effected By Institutional Factors

Because of economic globalization, the international trade become increasing,as one of the forms of international capital flows, FDI transfer technology andmanagement experience and other intangible assets to the host country’s domesticenterprises. However, with the economic development in the world the shortage offunds has been resolved, countries start to take measures to attract FDI, thetechnology spillover effect is influenced by many factors, institutional factors in thehost country is one of the factors.Based on China as the host country to analyze the effects of institutional factorson FDI technology spillover. The first，Thesis introduced the purpose and meaningand described FDI technology in details; the first part of the paper analysizedinfluencing factors and channel; the second part of the paper focused on twoinstitutional factors: the degree of openness and intellectual property protectiondegree. In the third part, the paper used the1997-2011year data of Chinese FDI andresearched intellectual property protection (PP), the openness(FR) in China’stechnology spillover effect, when there is no institutional factors, FDI technologyspillover has positive effects; However, taking into account of institutional factors,FDI technology spillovers became obvious or none, so only improving theinstitutional environment of the host country will be able to attract foreign directinvestment, to promote domestic technological level. China is in transition,institutional environment is not perfect, according to China’s national conditions, inthe forth part, the paper gives policy advices, our country should improve institutionalenvironment, to promote FDI technology spillover, to boost China’s technologicalprogress and economic development.