Research On The Spillover Effect Of The Foreign Direct Investment In Tourism Industry In China

Based on the new background of China’s economy and development strategy to discuss the development of tourism industry in China, the paper is to test the spillover effect of technology-oriented FDl (Foreign Direct Investment) policy in tourism industry. Firstly, the paper reviews the existed literature and then summarizes the history of FDl in tourism industry, considering which the research proposes four related hypothetical questions. After using econometrics and case study to testify the hypotheses, the paper explores the influence factors of the spillover effect of FDl in tourism industry in China. Main conclusions are as follows:1. FDI is an important part of investment in tourism industry in China. At the regional level, FDl in tourism industry is concentrated in the eastern area of China. At the industrial level, FDl in tourism industry is concentrated in star-rated hotel, travel agency and the homestay facility, etc. Star-rated hotel industry is one of the earliest industries attracting FDl in China. At the time phase level, the growth of FDI in tourism industry is faster than the average level and investment field extends from star-rated hotel to the travel agency, rural homestay facility, etc.2. Spillover effect of FDI in tourism industry is remarkable, which means that FDl is a significant factor that promotes the development of tourism industry of China. However, the effect are different in different areas and phases. Taking the star-rated hotel industry (2001-2013) as an example, the spillover effect is significant in the eastern-central area and western area, but the effect in the eastern-central area is weaker than that in the western area. In 2001-2008, the spillover effect is significant, but in 2009-2013, the spillover effect is not significant.3. The mechanism of the spillover effect of FDI in tourism industry follows the path of the content of spillover-the channel of spillover-the object of spillover-the result of spillover. The content of spillover includes the implements, technology, system and idea of the foreign enterprises. The channel of spillover includes the demonstration effect, the competition effect, cooperation effect and employee turnover effect. The object of spillover includes the employee, organization and region. The result of spillover includes the level of output, labor productivity, technical efficiency and total factor productivity.4. Technology gap is the influence factor of spillover effect of FDI in tourism industry (star-rated hotel) of China. Specifically, the gap of labor productivity is bigger, the spillover effect is more significant.