A Study On Influence Of Ifdi On Boosting Upgrade Of China's Equipment Manufacturing Industry

The equipment manufacturing industry has been a basic industry for a country.The development of equipment manufacturing industry is vital to pushing forward the manufacturing and other industries,advancing the industrialization and modernization of the country as well as raising the national status in the international community.Hence,the industrial development has been expanding.However,with the acceleration of economic globalization,the development of equipment manufacturing industry in China has been faced with the challenge and opportunity at the same time.Besides dealing with a weak demand in the external market,it is still remaining at the middle and lower sector of the international value chain.Amid the overall appreciation of RMB against US dollars,increasing cost of enterprise production and especially the Chinese economy entering the New Normal,the equipment manufacturing industry in China is in urgent need of the adjustment and upgrading of the industrial structure,the implementation of innovation driven development strategy as well as the new breakthrough in core technologies.Under the background of the foreign direct investment pouring into the Chinese market,it is quite necessary and also of realistic meaning to research the factors influencing the technology spillover of foreign direct investment in China's equipment manufacturing industry as well as the scale of the effect.It is also necessary to propose some policies and measures of reference value so as to give new impetus to the industrial upgrading of equipment manufacturing industry.Based on the analysis on the development status of foreign direct investment in China's equipment manufacturing industry,this paper has combined the theory and empirical study.In theory,it will make a study of the direction,mode,spillover effect and influencing factors of the technology spillover of foreign direct investment.Moreover,it has also elaborated on the channel,process and objective of foreign direct investment from many dimensions.By taking the actual condition of the industry into consideration,it has analyzed the possibility of technology spillover comprehensively.As to the empirical analysis,the principal component analysis has been utilized to build a technical index system,which aims to analyze and evaluate the overall development of equipment manufacturing industry in China.L P model has been also used to verify the scale and direction of the influence of the technology spillover of foreign direct investment on China's equipment manufacturing industry empirically.Some conclusions have been also made.Firstly,the input of research and development is not directly proportional to the output.Only the effective input of research and development can promote the progress of industrial technology.Secondly,the foreign direct investment has a positive technology spillover effect on the technical progress of China's equipment manufacturing industry.When IFDI increase 1%,the technical progress increase 0.281%.In addition,this paper has offered some advice on improving the mechanism of talent cultivation,utilizing the industrial cluster and forming a positive competitive pattern with the purpose of maximizing the impetus of the technology spillover of foreign direct investment to the industrial upgrading of China's equipment manufacturing industry.