The Influencing Factors Of Chinese OFDI Reserve Technology Spimover

The paper studies the reserve technology spillover effect and its influencing factors by explaining its mechanism and existence. Both theoretical and empirical methods are included in the study. In the theoretical research, we introduce the basic theory of foreign direct investment from the viewpoints of both developed and developing countries. Then we try to explain the meaning of “Outward Foreign Direct Investment OFDI” and “Reserve Technology Spillover”. Next we summarize the related studies of reserve technology spillover effect and its influencing factors. We also present the history and characteristics of China foreign direct investment. In the end we try to explain the mechanism of reserve technology spillover from the.In the empirical part, we want to figure out whether Chinese OFDI has obtained significant reserve technology spillover. We select related Chinese data from 1990-2013 and use CH model and LP model for reference. We draw conclusion that Chinese OFDI contribute to advances in technology, for each additional 1% domestic R&D capital stock TFP grows 0.49%, for each additional 1% foreign R&D capital stock from OFDI TFP grows 0.08%. Next, we choose human capital stock, domestic R&D spending, economic openness and financial development to test whether they can influence Chinese OFDI reserve technology spillover. We conclude that all these four factors can promote the increase of TFP(Total Factor Productivity). Human capital stock contributes to TFP through the channel of domestic R&D capital stock and the other three factors can promote the TFP through the channel of foreign R&D capital stock from OFDI.At the end of this paper we give some advices to both Chinese government and corporations. For the governments, they can give more financial support to the innovative enterprises and expand the degree of openness to the world. For the corporations, they can increase the investment in human capital and research development.