The Effects Of FDI In High Technology Service Industry And Technology Innovation Capability On Manufacturing Efficiency

In recent years, China is facing increasing downward pressure on the economy as the economic growth rate began to slow down.Traditional industries, especially the manufacturing sector are also under increasing pressure with economies in transition. Meanwhile, with the continuous transformation of the state economic development mode and the deepening social division of labor specialization. Information service, computer service and other high technology service industry play a more and more important role in the economic development. Its proportion in the total global investment in the stock is also growing. In this background, China are putting great efforts to develop high technology service industry and import high technology service industry Foreign Direct Investment (FDI). High technology service FDI can enhance the technology capabilities through technology spillover and take advantage of high technology knowledge-intensive service and technology-intensive characteristics, using technology innovation to drive and promote the development of related industries, especially the manufacturing industry in the industrial convergence. Given the close relationship between high technology service industry FDI and the efficiency of manufacturing industry, the paper using the ability of technology innovation as the breakthrough point, study on the relationship between high technology service industry FDI, technology innovation ability and manufacturing efficiency enhancement.Firstly, based on the detailed sorting of related literature, the paper analyzes the current situation of high technology service FDI, technology innovation ability and manufacturing efficiency. Then, the paper gives a comprehensive elaboration on the mechanism and environment of high technology service industry FDI, technology innovation ability and manufacturing efficiency from the theoretical perspective and thus proposes four hypotheses. Theoretical hypothesis H1:High technology service FDI can promote the development of high technology service industry, and provide advanced technology and service through the industry association effect, thus promoting the efficiency of manufacturing industry. Theoretical hypothesis H2:High technology service industry FDI can promote technology innovation ability, and the improvement of technology innovation ability is conducive to the improvement of the efficiency of manufacturing industry. Theoretical hypothesis H3:The higher the level of economic development areas, government investment policies and investment environment has become increasingly perfect, the more able to attract the inflow of FDI in high technology service, so as to promote the technology innovation capability of manufacturing industry efficiency promotion. Theoretical hypothesis H4:The higher the level of human capital, the higher the level of education and research and development capability, the more conducive to the improvement of technology innovation ability and manufacturing efficiency. Then, using the panel data of 31 provinces and cities of China in year 2005-2014 to make empirical test on the four point hypothesis, and finally, combining empirical analysis and theoretical analysis, put forward relevant policy recommendations.The study conclusion shows that:(1) High technology service FDI has an obvious effect on manufacturing efficiency improvement. (2) High technology service FDI will promote the enhancement of technology innovation ability. But the of technology innovation ability is not conducive to the improvement in manufacturing efficiency. (3) The higher level of economic development of the region is not conducive to technology innovation capability of manufacturing efficiency. (4) The higher level of human capital of the region is not conducive to technology innovation capability of manufacturing efficiency.