Study On Absorptive Capacity Of OFDI Reverse Technology Spillovers In China

Technological progress is the core element of enterprise competitiveness and national economic development.Independent research and development(R&D)、foreign investment(FDI)、foreign direct investment(OFDI) are important ways to promote the development of a country’s technology.Since our country implement the strategy of going out, foreign direct investment activities have maintain steady growth.In the year of 2014, the amount of our foreign direct investment surpassed the amount of absorption of foreign capital for the first time with the size of more than $100 billion.China has transform from a traditional funding recipient into a net cash flow going abroad country, it also marks the OFDI enter a "new normal" situation in our country.Our country is trying to get the foreign advanced technology from investing in the developed countries directly rather than the traditional passive "introducing" policy.The study of reverse technology overflow effect has caused academia’s attention gradually.This article focus on the perspective of absorptive capacity,by choosing the data of our country from 1995 to 2014, including the data of R&D investment, human capital, economic openness,infrastructure construction and economic development level index.In this essay,we are trying to do the research of the reverse technological overflow effect.Empirical study results show that China’s foreign direct investment of reverse technology spillover effect is significant.Economic development level, development level and financial market openness, economic structure and import and export play an important role in absorbing ability.This paper presents a way to improve absorptive capacity and put forward some suggestions to promote the OFDI reverse technological overflow effect according to the empirical research results.