China's OFDI Reverse Technology Spillover And Technological Progress In The Home Country

At present, the home and abroad economic goes sustained slowdown and domestic labor costs rise, China's extensive economic growth mode is under challenging, economictransformation become the consensus of Chinese society, the direction of the transformation is to develop the scientific and technological innovation, and using the science and technology to adjust the industrial structure. Technology spillovers obtained through foreign direct investment abroad to improve the level of the home country science and technology has been considered as an effective way. Along with the advancement of the reform process, the total amount of China's foreign direct investment occupy the proportion of the total amount of the foreign direct investment is more and more high, this will not only promote the internationalization of our country, and also will raise China's international status,but the increased amount does not represent the improving in quality, so the use of foreign investment to improve the technical level of our country, and promote industrial upgrading of our country has important research value.This paper is based on the angle of the effect of absorptionto study the relationship of theChina's foreign direct investment and technology level withthe condition of space constraints.According to model L-P andmodel B – K, the paper uses provincial panel data to analysis the foreign technology spillover effect from R&d resource countries and less R&d resource countrieson China's economyand technology under the condition ofabsorptive capacity factors including the research and development ability,the labor quality and technical potential difference, and join a virtual variable represent policy factors.Using Eviews on seven models with panel regression analysis, after the comprehensive analysis of the model results, we got some results: first,the OFDI to the developed countries is more able to explain China's technological progress and economic growththan the OFDI to developing country;Second, improving the ability of independent research and development and strengthening labor quality can help the economic development of our country;Finally, policy norms and guidanceare the important guarantee of foreign direct investment and technology development.Through analyzing the above research conclusion, this article draw some relevant sugges-tions: first, to increase outward foreign direct investmentin the area ofintensive R&D resource, and to strengthen the introduction and learning of foreign technology;Secondly, to increase investment in research and development of domestic, to raise the level of domestic independent research and development, and improve the quality of the labor force;Finally, consummating our country' laws and regulations about intellectual property rights, protectingthe research results, and strengthen the cooperation with international patent organization.