FDI Technology Spillover, Local Absorptive Capacity And Net Technological Sophistication Of Export

Since China's reformation and opening up, FDI to China continues to grow and makes great contribution to China's economic development. Especially after China's accession to the WTO in 2001, with a series of policy of attracting foreign investment, FDI in China has experienced a rapid development period. But after the 2008 economic crisis and China's rising labor costs, FDI also entered the slowdown period and its impetus to China's economic development also gradually reduced. And some research has shown that most FDI of China is in low technology industry. How much its technology spillover effect can actually influence on the production and technology ascension is not clear. Recently international FDI develops slowly and even emerges recession phenomenon. If China's domestic enterprises can continue to acquire new technology from FDI to upgrade the production and export capacity is the question.First this article summarizes the existing literature viewpoint, methods and models. Secondly, this article logically analysis the relationship among FDI technology spillover, local absorptive capacity and indigenous net technological sophistication of export. Further, this article basis on the three departments model in Xiaohua Chen's (2011) study, expanding the technology coefficient to three variables:R&D, FDI technology spillover and import technology spillover. Then getting the following conclusions:in developing countries the more skilled labor input and the higher skilled labor remuneration, the more positive promotion from FDI technology spillover to domestic net technological sophistication of export. Then, this article introduce the measures to estimate FDI technology spillover, local absorption ability and local export net technology complexity and give a cross-industry comparison and analysis of China's net technological sophistication of export and FDI technology spillover. It finds the net technological sophistication of export is high in low and medium technology industries; and the high technology products'net technological sophistication of export is low. Especially after excluding foreign-funded enterprises export influence, net technological sophistication of domestic enterprises in high technology industries has dramatically reduced. Further, this article constructed three kinds of fixed effect variable coefficient panel model. Through the empirical test it gets the following conclusions:first, FDI technology spillover effect all industries'net technological sophistication of export in China. Horizontal technology spillover is the strongest and back technology spillover is the weakest.Second, three categories of technology spillover of FDI in different industry shows different influence. Third, FDI technology spillover effect is affected by the local absorption capacity, existing human capital threshold effect. Fourth, our current human capital hinders the increase of local net technological sophistication of export. These empirical test conclusions are consistent with analysis of the theoretical model. Finally, this article gives some policy suggestions from macro, meso and micro perspectives.