An Empirical Study On The Technology Spillover Effect Of FDI In Manufacturing Industry Of Hubei Province

This paper mainly uses the methods of qualitative analysis and quantitative analysis to research manufacturing spillover of HuBei province.In the qualitative analysis part, this paper begins from the theory of FDI technology spillover. First,this paper analyzes the conduction ways of technology spillover, and concludes the conduction ways including four kinds:the first is competition effect; the second is technology imitation; the third is industrial connection effect; the fourth is personnel flow effect. Secondly, this paper analyzes the factors influencing technology spillover. Theoretical circles mainly have considered the technology gap of the host absorption ability and foreign enterprise. Based on the research analysis of scholars from at home and abroad, this paper have summarized the factors influencing FDI technology spillover as the following four points: the first is the economic development level of host country; the second is the market structure of host country; the third is the level of industry aggregation; the forth is the technology gap. What is more, this paper will do further research of these four points on how to affect FDI technology spillover respectively.In the quantitative analysis part, by DEAP2.1software, this paper has obtained the accumulation of total factor productivity (TFP) of27industries of domestic enterprises in Hubei province for six years.Then this paper has made correlation test and regression analysis for FDI and TFP in various industries. Finally, this paper has got the conclusion that the FDI of manufacturing industry in Hubei province has a significant positive spillover effects on domestic enterprises. On the basis of above analysis, this paper has added the influence factors of FDI technology spillover, through the influence factors interacting with FDI, which are introduced to the empirical model to make regression analysis, the final result is the following four points:the first is certain level of economic development can promote FDI spillover; the second is the market competition can help to improve the technology spillover ofFDI; the third is the FDI aggregation of a certain degree can promote FDI spillover effect; the forth is the gap between domestic and foreign technology hinders the FDI technology spillover. Finally according to the conclusions of empirical analysis, this paper puts forward some corresponding policy proposals on how to effectively enhance the FDI technology spillover on manufacturing industry of Hubei province.