Research On Geo-diversity And Threshold Effect Of Reverse Technological Spillovers Effect On OFDI

After implementing a “going-out” development strategy from 2000 s, the development of Chinese OFDI is increasingly rapid, especially in recent years. Chineses OFDI has progressed from a stable increase to a rapid development. In 2013 the outflow of OFDI from China has reached 1078.4 billion dollars, the first time, ranking at third in the word. Making a review of related theory and literature, this paper puts forward some corresponding theoretical assumptions. Based on the analysis of Chineses OFDI current situation and the enterprises’ practice through OFDI, this paper follows the empirical analysis. Firstly, one panel data sample of China’s 29 provinces from the year 2003-2012 is collected to calculate Total Factor Productivity by Solow residual method and establish a model which is based on the international R&D spillover model to test the exists of effect of reverse technology spillovers. Our result shows reverse technology spillovers exists significantly. Secondly, we find the effect of reverse technology spillovers is significantly various on different areas via further analyzing the data of different areas,with the spillovers effect of east area was larger than the midland,while the west area didn’t exist significantly. Finally, bases on Hansen’s dynamic panel threshold model, we have measured the threshold effect in terms of economic development, technology innovation, human resources and the level of opening policy. The result shows that reverse technology spillovers don’t exist when the level of technology innovation is below 0.005 and the other three factors also play a positive role in promoting the effect of reverse technology spillovers.According to the empirical results we conclude some constructive suggestions for the effective usage of the reverse technological spillovers effect on OFDI in terms of scientifically using of OFDI and the increasing of China absorptive capacity. Firstly, the scale and quality of OFDI should be improved. Secondly companies should increase the R&D investment in order to improve the absorption ability. Thirdly, government should raise not only the investment in local economic development technology innovation human resources but also the level of opening policy thereby building a comprehensive absorption ability system to promote the domestic technological progress.