Xiamen By The Impact Of Foreign Direct Investment On The Technology Progress

With actively introducing FDI, through years of development, Xiamen ’s economy has beengreatly improved, since designated as a special economic zone, the actual usage of foreign capitalroars from73.28million dollars to1.72366billion dollars between1985to2011. The gross value ofregional production increases from0.741billion yuan to253.931billion yuan between1981to2011. By adopting the investment strategy--“absorbing the technology by sacrificing market”,notonly we hope to make use of foreign capital to promote China’s economy but to promote thetechnical progress of indigenous industry through technology spillovers of FDI. However,research found by some experts revealed that the effect of FDI on technology progress aredifferent. Therefore, this thesis studies the FDI’s role in the technological development of Xiamenfrom inter-industry spillover and intra-industry spillover.In the second chapter, through the theory of international direct investment, enterpriseknowledge theory and knowledge spillover theory, this paper analyzes the source of FDItechnology spillover, at the same time, analyzes the FDI technology spillover effect andinfluencing factor. On the bases of above, I’m going to analyze the mechanism of FDI effects onhost technology progress. In the third chapter, from the FDI scale, source structure and industrialdistribution, this article is to analyse the status quo and characteristics of FDI of Xiamen. At thesame time, to make a detailed analysis on the direct and indirect effect of FDI. The fifth chapteris to prove whether the FDI can promote Xiamen’s technology progress and causes backwardlinkages technology spillovers through empirical analysis.Through the theoretical analysis and empirical analysis, this article draws the followingconclusions: first, in some degree, FDI has a certain stimulative effect on the promotion ofXiamen’s technological progress, but it shows different characteristics when Xiamen’s technicallevel is in different stages. Second, make sure Xiamen’s industrial structure when absorbingrelevant FDI, we should endeavor to further the relation between foreign-owned enterprises anddomestic enterprises. Third, we should try to improve the stock of human capital in Xiamen area.