The Reverse Technology Spillover Effect Of China's OFDI

With the deepening of economic globalization,China has successfully embedded itself in the global value chain.Due to technological limits,China is still in a relatively low-end position.In order to accelerate domestic industrial transformation,OFDI has become a significant method for China to seek superior technology.A study on the reverse spillover effect of OFDI,especially on an industry level,not only deepens our understanding of how OFDI generates technological progress in domestic industries,but also enables us to give industry specific recommendations designed to maximize this effect.Besides building a new mechanism of the reverse spillover effect,this paper also conducts empirical tests based on industry panel data.The test results successfully verify the significance of the reverse spillovers,as well as sheds light on the significant variations displayed in different industries.Lastly,policies recommendations are offered on both industry and country levels in order to better utilize the sourced-technology through OFDI.