Based On Absorptive Capacity:A Study On The Influence Of FDI Technology Spillover On Economic Growth Of Xinjiang

With economic globalization and the economic integrity, international capital is flowing fast and foreign direct investment(FDI) is becoming the main way of technology diffusion and technology transfer. By the end of 2014, China is the largest country in introducing foreign capital. Foreign direct investment(FDI) plays an increasing important role in promoting the economic growth of our country. And it also is the most factor of technological progress by absorbing foreign direct investment technology spillover. Xinjiang is positioned as the core of the Silk Road Economic Belt in the national strategy of the Belt and Road. It provides more opportunities to attract foreign direct investment(FDI) for Xinjiang province. But whether the use of FDI can obtain technology spillover and promote the long-term economic development, what factors influence the effects, the answers to these questions are important for Xinjiang to grasp the national policy and make good use of foreign investment platform.The paper discusses how the technology spillover of FDI effect on economic growth from the perspective of absorptive capability. Many researches have been carried out at the national level or industry level, while researches remain weak about western China. The paper emphasizes the importance of absorptive capability and discusses how absorptive capability effects on the technology spillover of FDI from the theoretical analysis and empirical aspects. The results of this paper will not only enrich the technology spillover of FDI theory, verify the classic discussion of the existing literature, but also provide the corresponding theoretical guidance and reference for relatively backward area of FDI technology spillovers and absorptive capability.The paper begins with the technology spillover of FDI in combination with the theory of absorptive capability and the mechanism in which absorptive capability affects FDI technology spillover. Secondly, the current situation of FDI and absorptivecapability is analyzed comprehensively and systematically. Thirdly, according to theoretical analysis, we adopt Feder model and extension of cobb-douglas production function to test how FDI technology spillover effect on economic growth from 1995 to 2014 in Xinjiang province. The empirical results are positive and FDI technology spillover has a significant difference at different times. To investigate the difference,we do some researches on FDI technology spillover from the prospective of absorptive capability and then discuss the empirical results. At last, according to the actual situation of Xinjiang, the existing theory and model test results, the article puts some proposal that will improve FDI technology spillover and absorptive capability.The research demonstrates that:(1) In the process of FDI technology spillover affecting Xinjiang’s economic growth, there is no obvious correlation. When we employ the rolling OLS regress model for further research from the dynamic angle,only to find that different periods of technology spillover effect are different. It also reveals that appropriate external environment is essential to FDI technology spillover.(2) The perspective of the infrastructure level, the economic openness and R&D capabilities are the principal elements for FDI technology spillover.(3) However,human capital on FDI technology spillovers is relatively weak. In the case, the government should increase investment in education, and make development plan to increase the stock of human capital.(4) The efficiency of financial market go against FDI technology spillover, so the government must strengthen the construction of financial market and improve the efficiency of financial market. And the market competition is an uncertain factor. The conclusion is correlated with scholars’ opinion:Moderate economic openness and orderly market competition environment is matter to technology spillover of FDI.