A Research Of China's Outward FDI Reverse Technology Spillovers Treshold Effect On Industry Perspective

Economic globalization has become a major trend in today's world.When face the increasingly fierce competition; the Government of China attaches great importance to OFDI. At the same time, many experts and scholars began to study China's foreign direct investment, but not many of them study reverse technology spillover of OFDI in China. Therefore, this paper, tries to examine and analyze the relationship between OFDI reverse technology spillover and China's TFP and it has a certain theoretical and practical significance. This paper summarizes the literature of reverse technology spillover of OFDI, and find scholars'researches mainly around factors'promoting effects and motivation of reverse technology spillover of OFDI, and there few scholars research on the mechanism of this problem. And in the empirical study of the problem, the view of the scholars are not the same, hen this paper summarizes the current status of the development of Chinese OFDI, including distribution and geographical distribution of the industry. Also this paper summarizes the problems in the way of reverse technology spillover of Chinese OFDI. This paper concludes the theory of foreign direct investment and tries to research on the mechanism of reverse technology spillover of OFDI.Second, trying to analyze the current situation of China's OFDI. And This paper makes use of panel data of nineteen industries in China from 2004 to 2013, applies the nonlinear threshold panel model, to analyze the influence that R&D spillovers from OFDI make on the total factor productivity under different level of human capital. Based on it, this paper further studied threshold of human capital on R&D spillovers from OFDI among industries with different factor intensity. The result shows that there is significant human capital threshold effect between R&D spillovers from TFP to OFDI, if industry's human capital is below the threshold, OFDI would make negative effect on domestic TFP, but once human capital reach threshold, OFDI would make positive effect on domestic TFP. There were significant differences of R&D spillovers from OFDI between industries with different factor intensity. In the end, this paper summarized conclusion and policy recommendations.