A Study On The Relationship Between Absorptive Capacity Of FDI Technology Spillover And Economic Growth Of Jiangsu

This paper starts with the different technology absorptive capacities in differentareas, and TFP induced by spillovers would be viewed as an intermediary to study therelationship between economic growth and different absorptive capacities in differentregions of Jiangsu. Firstly, this paper expounds the definition and origin of FDItechnology spillover, then we respectively analyzes the FDI technology spillovertheoretical basis and its spillover mechanism from aspects of within an industry orbetween industry and regions. Secondly, this paper expounds the factors that affecttechnology absorptive capacities and we also explain the phenomenon of Thresholdeffect during the development of economics. Thirdly, from Cobb—Douglasproduction function, we deduce a theoretical model that shows the relationshipbetween economic growth and technology spillover absorptive capacities; chapter4inthis paper conduct a series of empirical tests to further analyses the relationshipbetween technology gap, human capital and GDP of Jiangsu province. What’s more,in this part we divide Jiangsu into3parts according to the different locations ofregions to find our final result: Jiangsu province is an unbalanced developing area thatdifferent regions have different technology absorptive capacities. The effect of entryof FDI to different regions is different according to the different technologyabsorptive capacities. Totally, there’s a double-threshold effect between economicgrowth and technology gap and there’s no strict relationship between economicgrowth and human capital in statistical sense. Above this, we propose somesuggestions for improving the absorption ability level so as to promote the economicgrowth according to result in chapter4.