The Influence Of Financial Development Level On FDI Technology Spillover Effect

Since 1990,the amount of foreign direct investment(FDI)introduced by China has increasing fast.Before,as a developing counties(or direct),our country utilizing FDI is used to make up the capital gap and foreign exchange gap.But now with the rapid development of our country's economy and the accumulation of foreign exchange reserve,the capital gap and foreign exchange gap do not exist in China.Mainly take advantage of the advanced technology and enhance absorption of FDI technology spillover effects.The effects can promote the progress of technology and the industrial transformation in our country.The premise of positive FDI technology effects is that the host countries(or districts)have the absorptive capacity matched with scale of absorbed FDI.The dimension of absorptive capacity concludes the technology,knowledge reserves,the infrastructure level and the financial level,etc.As a vector of the host countries absorptive capacity,financial market development affects FDI technology spillover effects and its absorption.On the one hand,developed financial market provides full information and abundant capital;on the other hand,it promotes the efficiency of capital distribution for supporting the enterprises in china accepted the high-skilled.The enterprises in host countries need capital to buy the patent,renew the machines and employ the high-skilled labor.Especially for the small technology included in the FDI.high-technology company,the fully developed financial market can provide more financing channels.Main source and total factor productivity namely TFP including technological progress,production specialization,organizational innovation,etc..The FDI technology spillover index express in total factor productivity.Based on financial indicators(financial intermediary development level,scale,stock trading stock)to study the effect on FDI technology spillover effect of channel and combined with 2000-2014 panel data of provinces(municipalities),considering the level of financial development in the regional differences of China and the financial level differences of eastern,central and western areas respectively for empirical research.Research results show that FDI don't benefit technology progress,only when the financial development level to match the scale of FDI in the region of absorptive capacity,can promote the absorption of FDI technology spillover effect.Technology spillovers have negative and significant influence in the central and don't have significantinfluence in west and east.financial development level have good influence on FDI technology spillover effect in the east and west.