Research On The OFDI Reverse Technology Spillover Effect Based On Difference Across Industries

In the past few years, the scale of direct investment to developed countries from China has been continuously expanding, which shows the intention of technology acquisition through outward foreign direct investment (OFDI) of our corporations. Through outward foreign direct investment, multinational corporations in developing countries can utilize spill-over effects of capital to enhance the technological level of the corporations or even their homeland. So far there have been few studies on the reverse technology spillover effects, the existing studies focus more on the nation from the macroscopic level, while studies on the industry from the medium level have not been very common. This passage based on the existing studies on the international spillover effects, starts from the industrial level, analyzing the differences in the major reverse technology spillover effects in the national economy.The passage firstly summarizes the major theories on the foreign direct invest (FDI) in developing countries, based on this foundation, then teases out the micro mechanism and influencing factors of the reverse technology spillover effects, forming the industrial mechanism of difference regarding the reverse technology spillover effects of China’s OFDI in this passage. After that, under this framework the passage analyzes the current situations for China’s OFDI and the influencing factors of the reverse technology spillover. At last, it implements experimental tests of the reverse technology spillover effects in every industry, by applying DEA-Malmquist Index to measure and calculate the total factor productivity (TFP) and the decomposition index of 9 major industrial sectors of national economy, and comparing the TFP and decomposition index of all the industries through the grey connection model with oversea studies on spillover effects.The study shows that, both the reverse technology spillover effects of China’s OFDI industry and the TFP posses above medium-level connections, but not obvious industrial laws. Accounting for the highest ratio of international investment and the largest technology spillover, manufacturing in China’s OFDI shows relatively weak technological externalities. The industries with higher connections in tertiary industry are the ones with low technology content, while the industries with high technology content obtain the lowest connections among the tested industries. In the end, the passage offers related policy suggestions based on the conclusion.