The Spillover Effect Of Technology Imports In Hubei Province

In the open economy, the international technology spillover caused by import trade has a great effect on promoting national technological progress and long-term stable growth of national economies. Since the reform and opening up, China’s foreign trade volume increased year by year, the research of impact that the imports of foreign trade on the country or region is also increasingly important. The purpose of this study is that on the basis of the existing research, combined with the macroeconomic data of Hubei Province, do the empirical analysis of technology spillover impact of imports and its influencing factors.Firstly, this treatise reviews the imports technology spillovers theory, and then the empirical literature at home and abroad, and summarizes the influencing factors of imports technology spillovers. This article has always been around the central theme that the import trade technology spillover impacts on total factor productivity of Hubei Province, and then probe the problems in the practice of obtaining import trade technology spillover effects of Hubei Province. The theoretical model of this treatise is the trade Spillover of Coe and Helpman (1995). At the same time of analyzing the impact of imports technology spillover effect on Hubei province, we comparative analysis technology spillover impact on the progress of different industries in Hubei Province, and the technology spillover differences between different countries.The empirical results show that the import trade is a significant role in promoting technological progress in Hubei Province, and it does long-term beneficial effects to the industry. The impact of Hubei province R&D investment to the province’s technological advances is obvious, this is the same with the previous research findings; Japan’s technology spillover impact on Hubei Province is the most significant between different countries, followed by Germany, the United States. Finally, according to the findings above, we propose some policy recommendations on how to use of foreign technology spillovers and expanding the import trade technology spillover effect, on the one hand to improve the import trade environment in Hubei Province, on the other hand, to enhance our own R&D level, human resources level and the absorptive capacity of absorbing the imports technology spillover effect.