Research On Reverse Technology Spillover Effect Of China’s Outward Foreign Direct Investment

As the strategy of "going out" into practice, China’s foreign direct investmentappeared a strong growth momentum. Is mainly by the introduction of foreigninvestment in China has gradually transition to the stage of both introduction offoreign capital and foreign investment. As a developing country, the main goal ofstrategy of "going out" is to access to natural resources, op en up the internationalmarket and access to advanced technology. Currently, however, domestic research onthe economic effects of outward foreign direct investment is mainly concentrated inthe areas of industrial upgrading, trade structure, the home country of employment,etc., and study of outward foreign direct investment technology spillovers to the homecountry is less. Therefore, it is necessary to the existence and influence factors ofreverse technology spillover effect of outward foreign direct investment in systematicresearch in order to better provide theoretical guidance for practice.Based on the provincial panel data from2003to2010as sample, using theinternational R&D spillovers regression model, this paper examined the reversetechnology spillover effect of China’s outward foreign direct investment. On this basis,by using the threshold panel model to further examine the threshold characteristics ofvarious factors affecting the absorption capacity of outward foreign direct investmentin the reverse technology spillover. The results of the study show that:(1) Nationwide,the spillover of foreign R&D capital through outward foreign direct investment to thetotal factor productivity, technical progress and technical efficiency has a significantnegative effect, outward foreign direct investment are still failed to become aneffective channel transfer international R&D capital;(2) Domestic R&D capitalinvestment is still the main driving force of China’s total factor productivity growth;(3)From the results of the regional point of view, the presence of the impact of outwardforeign direct investment on TFP significant regional differences, outward foreigndirect investment and technological progress and technical efficiency only for theeastern region resulted in a significant reverse technology spillover, while the centraland western adverse spillover effects cannot be achieved;(4) Human capital level, thetechnology gap between home and host countries,the level of economic development,the level of financial development and openness to foreign all have significant effecton reverse technology overflow, when the index reaches or exceeds a certain threshold, will trigger a positive reverse technology overflow. Therefore, the government shouldadopt policies and measures differentiated according to the actual situation in theregion: For reverse spillover effect has been seen in the region, should increase accessto its technology-based outward foreign direct investment, and strive through flexibleinvestment approach effectively absorb foreign advanced technology; For the regionlack of absorptive capacity should focus on cultivating their absorptive capacity,including increased investment in research and development, improve the level ofhuman capital, perfecting the financial services, etc., to raise above the threshold levelto reach a positive reverse technology spillover, in order to facilitate play reversespillovers.