Reverse Technology Spillover Of OFDI And The TFP Of China

Economic globalization has become a major trend in today’s world.When face the increasingly fierce competition, the Government of China attaches great importance to OFDI. At the same time, many experts and scholars began to study China’s foreign direct investment, but not many of them study reverse technology spillover of OFDI in China. Therefore, this paper, tries to examine and analyze the relationship between OFDI reverse technology spillover and China’s TFP and it has a certain theoretical and practical significance.This paper summarizes the literature of reverse technology spillover of OFDI,and find scholars’researches mainly around factors, promoting effects and motivation of reverse technology spillover of OFDI, and there few scholars research on the mechanism of this problem. And in the empirical study of the problem, the view of the scholars are not the same.hen this paper summarizes the current status of the development of Chinese OFDI, including distribution and geographical distribution of the industry. Also this paper summarizes the problems in the way of reverse technology spillover of Chinese OFDI. This paper concludes the theory of foreign direct investment and tries to research on the mechanism of reverse technology spillover of OFDI. Second, trying to analyze the current situation of China’s OFDI. And in this paper’s empirical part, this paper constructed OFDI technology reverse spillover model according to L&P(2001), select the relevant data of the Chinese from1990to2012. Empirical test of the relationship of China’s OFDI, research and development of domestic capital, domestic TFP. The results show that the OFDI of China will bring reverse technology spillover, and it can improve the TFP of China, and the influence coefficient is0.065012,it’s larger than the calculation of some scholars, but the effect is still limited. Also,the domestic R&D is still the main source of TFP, and the influence coefficient is0.153316. In the end,this paper summarized conclusion and policy recommendations.