The Research Of Ofdi Trade And Technology Spillover Effect

China’s overseas foreign direct investment (OFDI) has shown a strong development momentum in recent years, it is also an important way of participating in the international market. Through China is a latecomer, it has experienced rapid growth and made some achievements; As the second largest continent in the world, and with a population of nearly a billion consumer market, African has become the new hot spot in the world direct investment; While the world’s food shortage is a long term problems that worried countries in the world, which poses a serious threat to the world development and stability. For some countries, the food crisis is the last straw that breaks the camel; China and Africa has a strong complementary not only in agricultural resources, but also in markets and technology.Sino-Africa agricultural cooperation has a long history of more than60years, which has made great achievements. The rapid development of bilateral agricultural trade and the technology spillover effect is obvious, and also implies great potential. First, the core content of this paper can be divided into two parts: firstly, the research of trade promotion effects in China’s agricultural products export to Africa; secondly, the analysis of economic impacts induced by the technology progresses in African agricultural sector.Second, this paper investigates the theoretical mechanisms of trade enhancement and spillover effects caused by foreign direct investment in Africa; then flowed by a statistical analysis the status of Sino-Africa agricultural investment and trade structures, and make a systematic analysis of the main factors that will impact Sino-Africa trade to draw an objective, accurate positioning;Then, this paper uses an extended gravity model to verify the various effects on agricultural export trade, such as foreign direct investment, population, institutional factors, the level of economic development and trade policies and other factors, and compared the facilitating effects of China’s foreign direct investment on agricultural exports based on a static and dynamic panel data model of39African countries. Moreover, this paper classifyed the39African countries into three groups according to the degree of marginalization, and draw a conclusion that the effects of China’s foreign investment in Africa on bilateral economy vary by groups; once more, this paper analyzed the technological progress in various agricultural sectors of African countries by the technique of Malmquis index; a GTAP(Global Trade Analysis Project) simulation analysis of the technology progressive and economic effects in African agricultural sector induced by China’s foreign direct investment in Africa is also adopted in this paper, In particular,this paper examines its impact on welfare, GDP, per capita utility, agricultural production, agriculture import and export prices, etc.At last, this paper gives some advice on Sino-Africa agricultural cooperation according to the empirical results, such as, the expansion of the scale of investment especially in agricultural sector in Africa, strengthen trade cooperation with the strong marginalization group of African countries, innovate the means of Sino-Africa agricultural cooperation, improve agricultural trade policy with Africa; promote African agriculture technological advances to improve African agricultural productivity; complete the government’s functions of facilitating and guidance, and other policy proposal about China’s foreign direct investment in Africa.