Ofdi Reverse Technology Spillover Mechanism And China’s Economic Growth

The global financial crisis in2008led to the weakness of international demand, China’s domestic economic growth also began to slow down. Therefore China is badly in need of economic transformation and upgrading, which depends on the technological progress. As a backward country, acquiring the technology spillovers through foreign direct investment is undoubtedly a way of enhancing innovation capability.Since developed countries has always been the leader of the foreign direct investment, academic research on the technology spillover effect of technology-leading countries’multinational corporations has already been very thorough and complete. With the rise of emerging countries, the study of transnational enterprise technology spillovers is turning to developing countries, but most of researches were still confined to two points:The first is whether the reverse technology spillover exists; the second is whether the reverse technology spillover has effect on domestic economic growth. By the empirical researches on on China’s foreign direct investment enterprises, most scholars believe the existence of reverse technology spillover effect, but the mother country enterprise, but its contribution on enterprises, industries and even the whole country’s TFP is not significant. This on the one hand proves seeking advanced technology through OFDI is valid, on the other hand also indicates uncertainty when seeking the reverse technology spillover effect. As for researches on mechanism, although some scholars have put forward the limit condition maybe the technology absorption capacity, but the lack of innovative researches in theoretical aspects. And the article is focused on seeking a breakthrough in the mechanism of reverse technology spillover effect:by developing the endogenous growth theory based on the three-sector model of Romer, and using equilibrium analysis, this article has derived the effect of reverse technology spillover on mother country’s economic growth.First of all, this paper make a reviews of economic growth theories, empirical researches on technology spillover effect, and the factors affecting the technological absorption capacity at home and abroad. On the basis of theoretical and empirical researches at home and abroad, the third chapter from a theoretical angle has made some extended studies in the mechanism of reverse technology spillover effect. As there has been no convincing researches on theoretical mechanism, this article has some innovations in theory. The fourth chapter analyzes some of characteristics and influencing factors of China’s foreign direct investment, and by using the relevant data of1992-2012, the fifth chapter has made empirical analysis. The conclusion is that China’s OFDI reverse technology spillover has a positive effect on the domestic economy growth, but the contribution level is not very high, while the technology gap will hinder the occurrence of the reverse technology spillover. The sixth chapter, based on the above constraints puts forward the corresponding policy recommendations. Because the cause of restraints on reverse technology spillover may the technical gap which leads to the lack of absorption and transformation ability, the government can establish or improve national policy mechanisms to guide or support the enterprises, which can help the enterprises acquire advanced technology by OFDI more effectively.