Study On The Influence Of Host Country 's System Quality On The Reverse Technology Spillovers Of OFDI In China

Since the reform and opening up, a series of preferential policies for foreign domestic attracted a lot of foreign direct investment. This has accumulated sufficient capital for the development of domestic production.As the role of science and technology in the productivity become more prominent, enhancing their level of technology has become a fundamental approach to economic and social development.There are two ways to improve our level of technology.One way is to strengthen independent research. Increasing R&D spending, improving R&D facilities and improving the educational level of R&D personnel are some ways to promote domestic R&D capabilities and enhance the level of domestic technology.The other way is through the exchange and technology developed regions, cooperative manner, drawing on lessons from foreign R&D results, to improve their skills.To this end, our country made n the early 20th century, "going out" is a great strategy to encourage domestic enterprises to actively go out and development of foreign direct investment. Under the government’s strong support and motivation to enhance their level of technology, many domestic enterprises including Huawei actively go out and set up subsidiaries or branches of foreign technology-intensive areas. By the end of 2013, China’s foreign direct investment flows jumped to third in the world, for the first time become the world’s third largest foreign investor. Foreign direct investment trends unstoppable.By investing in technology-intensive areas, domestic R&D personnel with foreign companies for technical exchanges and cooperation, learn from foreign outstanding achievements, China’s enterprises can obtain foreign technology spillover. This is the reverse technology spillover effect of foreign direct investment. To acquire this technology spillover effect for the purpose of investment called technology-seeking for foreign direct investment. To the maximum extent possible to obtain reverse technology spillover, various factors need to analyze the impact of technology spillovers. Many scholars have analyzed from the perspective of the home country of investment, and focus on investment in the host country factors is relatively small.From the point of view of the host country, the host system focuses on quality (including quality, the quality of the political system, economic system, cultural system quality) Foreign Direct Investment in China reverse technology spillover effects. The first part of this paper analyzes the background of the study, the second part of the specific mechanism of reverse technology spillover of technology spillover effect on the mechanism of direct investment in reverse to me and affect the quality of the host system for analysis. The next two parts of this article were positive. The first part of the evidence in order to test the existence of China’s foreign direct investment in the reverse technology spillover effect. The empirical results show that China’s foreign direct investment is conducive to enhancing the level of domestic technology to verify the existence of reverse technology spillover effects. The second part of the empirical test the host country specific institutional quality foreign direct investment on the reverse technology spillover effect of the impact. Through the host country specific indicators of institutional quality inspection, we find that the system in favor of the host economy reverse technology spillover of foreign direct investment, and the host of reverse technology spillover political system has hindered. Host and home country cultural distance is too large will lead to reduction of reverse technology spillover. Based on the above empirical results, the paper concludes with a number of specific policy recommendations. This paper argues that China’s foreign direct investment should invest more liberal economic system in the country and the level of cultural gap smaller countries. Select the location of this investment can contribute to reverse technology spillover effect of China’s foreign direct investment.