A Study On The Mechanism Of The Effect Of FDI 's Sole Proprietorship On Technology Spillover

The scale of foreign direct investment in China continues to grow since the reform and opening up.The holding ratio of foreign investment in foreign capital enterprise continuously improve,and most of the new entrants of FDI choose the form of wholly owned.This is referred to as the FDI sole ownership tendency.In this paper,we research the impact of the FDI sole ownership tendency to the technology spillover effect.In the theoretical model,we adopt four stage theory of technology developmentbased on the theory of endogenous economic growth theory.Combining Blomstrom’s five path theory of technology spillover,we analyse the influence mechanism of the FDI sole ownership tendency to the technology spillover effect.A mathematic model is established and analyzed to find the impact in different cases.Studies have shown that there are both negative effects and positive effects from the FDI sole ownership tendency.The total effect depends on which one is larger.In the empirical part,we adopt shanghai as an example.Using solow residual method we calculate the total factor productivity of past years in Shanghai based on Shanghai’s1992-2011statistical data.Then we use the generalized difference method for regression analysis.The results show that in general, the FDI sole ownership tendency in Shanghai is conducive to the technology spillover effect.This shows that the wholly positive effect is greater than negative.The reason may be most ofFDI is into the third industry in Shanghai,while the technology spillover of third industry mainly depends on demonstration effect and competition effect.And thus we further demonstrates the above theoretical model.Finally some policy recommendations are proposed in the face of the FDI sole ownership tendency.