The Impact Of Institutional Distance On Reverse Technology Spillovers-based On ‘The Belt And Road'

The economic development is the eternal theme of human society andthe majority of scholarstake delight in talking about the related researches.One of the important research achievementsis the ‘Theory of Endogenous Growth',which make how to promote the technological progress become the academic attention.Correspondingly,the technical externality,namely reverse technology spillovers,which is generated from Outward Foreign Direct Investment,has a great importance and significance to the economic development and technological progress of a country.Since President Xi puts forward "The Belt and Road" strategy in 2013,the total number of foreign direct investment has risen year by year.In this case,will China be able to obtain the reverse technology spillover effect through OutwardForeignDirectInvestment? What impact will be brought? What factors have affected the spillover effect in the reverse technology spillover process? All of these are urgent problems to be explored.First of all,based on the summary of relevant literatures domestic and overseas,this paper studies themechanism of reverse technology spillovers and the impact mechanism of system distance.And then by analyzing the flow and stockof foreign direct investmentin China from 2003 to 2015,and tightly integrating with the "Belt and Road" national strategy,the writer selects 15 countries along "the Belt and Road",build the system distance index systemthrough the principal component analysis and explores the system distance between China and these 15 countries from the aspects ofthe politics,economy and culture.Finally,this paper puts the system distance variable into the reverse technology spillover model,and carries on the regression analysis through the paneldata model.The empirical results show: from the perspective of institutional distance,the political distance and economic distance have a greater influence on the distance between different countries than the cultural distance.From the result of the political distance measure,the political policy of China is in the more moderate position among the 15 countries.Whereas the previous system distance between China and Vietnam is minimum and that between China and Singapore is maximum.From the measurement result of economic distance,the openness of China's economic policy is lower.The economic distance between China and Russia is the smallest,and that between China and Singapore is the largest.From the measurement result of cultural distance,the culture of Indonesia is more similar to the Chinese culture and the Hungarian culture is quitedifferent from the Chinese culture.From the measurement result of institutional distance,the distance between China and Russia is the smallest,while it is larger between China and developed countries such as Singapore and Czechoslovakia.From the view of the institutional distance effect on the reverse technology spillovers,the institutional distance generally obstructs the reverse technology spillovers.Specifically,the economic distance and cultural distance play more significant impediment role to the reverse technology spillover,while it is not significant for the political distance.