The Empirical Study On OFDI’s Reverse Technological Spillovers Of Shandong Province

Nowadays, the international capital flow is becoming increasingly dynamic, more and more countries begin to conduct outward foreign direct investment. They have kinds of purposes; however, the main purpose is to attain the host country’s advanced technologies so that they can enhance their countries’ innovation and technologies. Under the guidance of “going out” strategy, the OFDI of Shandong Province has attained a high increase and begins to take the shape. So far, there have already had many studies home and abroad about the Reverse Technological Spillovers of OFDI, however, most of these studies are concerned about the OFDI of the developed countries, therefore, the conclusions drown cannot fully explain the OFDI actions in developing countries. Even those which study the developing countries are just involved in the country level without any study concerning the region or province level of a country. Besides, the existing empirical studies differ from each other on the variables chosen and they are also inconclusive resulting in the results lacking persuasion. Therefore, this article will choose the OFDI of Shandong Province as the object of study and make empirical analysis on the Reverse Technological Spillovers of OFDI.Based on the existing studies, this article builds the regression model and tests the variables with ADF Test、Co-integration Test and Granger Causality Test. The test results shows that the TFP of Shandong Province and the R&D capital stock、the R&D capital spillover from the foreign、the OFDI stock and the Human Resource Capital Stock have long-term、stable and balanced relationship, they are all the reasons promoting the TFP of Shandong Province. The OLS regression results of Model One show that the promotion effects of the R&D capital stock and the Human Resource Capital Stock are obviously great than that of the R&D capital spillover from the foreign and the OFDI stock; the regression results of Model Two show that the combination of the Human Resource Capital Stock respectively with the R&D capital stock and the R&D capital spillover from the foreign have greater effects than the two variables act solely. Finally, based on the theoretical and empirical analysis, the article proposes some advice on the OFDI of Shandong Province from the government and the enterprises view respectively.