The Empirical Analysis Of The Factors Affecting The Reverse Technology Spillover Of Jiangsu's OFDI

Under the background of globalization and in the more and more fierce international competition,enterprises which urge to capture an advantage position in the global competition,need to enhance their core competitiveness.How to improve the core competitiveness?Increasing the investment of R&D and engaging in self-innovation become the first choices for many developing companies.However,as the investment of R&D has high opportunity cost,many developing countries and areas choose outward foreign direct investment.That is to say these countries or areas absorb the advanced technologies and management experiences through the reverse technology spillover of OFDI.To improve the independent innovation of Chinese companies,Chinese government proposed the "going out " strategy,encouraging Chinese enterprises to go abroad and invest in foreign countries.The government of Jiangsu Province responded positively and encouraged local companies to invest abroad.Based on reading amounts of relative articles and the research on the reverse technology spillover effect of OFDI,this dissertation mainly analyses whether the four factors together with OFDI has an effect on the technical improvement of Jiangsu Province.Firstly,the thesis introduces the background,significance,content and methods briefly.Then,it lists the relative literature describing developed and developing countries on this topic.Thirdly,the theories of OFDI and the mechanism of reverse technology spillover through OFDI are explained clearly and logically.After that,the thesis analyses the current situation of Jiangsu' OFDI and each factor specifically.The fifth part is the empirical analysis,testing in two aspects:one is to test whether OFDI of Jiangsu Province has the reverse technology spillover effect.The other is test whether the factors with OFDI have the effect on TFP,ie technical improvement of the province.The final chapter concludes all and provide some recommendations.In the empirical analysis,the OLS regression is applied to test the effect of OFDI,IFDI,Export and Import to Patent step by step,using the data from 1978 to 2014.The results show that it exists positive effect,that is to say there exits the reverse technology spillover effect of OFDI in Jiangsu Province.Then by referring to the Jiangsu Statistical Yearbook,collecting the data of GDP,capital and labor from 1978 to 2014,and applying Cobb Douglas production function to calculate TFP,the empirical chapter tests the relationship between OFDI and OFDI,human capital,R&D,openness,IFDI.The results reveal that OFDI can generate the reverse technology spillover and promote local technical advancement in Jiangsu Province.The following four ways which can improve the absorptive capability of local companies are improving the quality of human capital,increasing the investment of R&D,reducing the trade limits and attrating more IFDI.