The Study On Threshold Effects Of FDI Technology Spillover In China's Service Sector

With the expansion of China's service sector,the proportion of service FDI in the whole FDI increased.The inflow of FDI not only alleviates the shortage of funds faced by the host country,but also brings technical spillover to the host country.Therefore,it is of practical significance to study the factors which influence the FDI technology spillover in the field of China's service industry.Firstly,this paper studies the factors that affect FDI technology spillover from aspects of the region and industry on the basis of scale and distribution.Among them,the main factors include the regional economic development level,degree of opening,intensity of R&Dinvestment,the level of legal protection,the level of industry development,wages,human capital and enterprise scale.Secondly,based on the panel data of 26 provinces during 2004-2014,this paper calculated the threshold of the regional economic development level,opening degree,R & D intensity and law by using PSTR model to test the threshold of affecting factors of FDI technology spillover in service sectors.After that,the same method is used to test the threshold of influence factors in 13 segments of service industry.Those factors include industry development level,wage,human capital and enterprise scale.The results show that:(1)for these provinces,the level of regional development,opening degree and the level of legal protection has a single threshold.Provinces whose opening degree and the legal protection have higher threshold value would have positive spillover.And the level of regional development failed to show a positive spillover.There exist two thresholds in the R&D intensity,both high and low R&D intensity can benefit the tech-spillover.(2)for the 13 segments,industry development level,wage,human capital and enterprise scale have single threshold.When these factors reach the thresholds the tech-spillover will be promoted.(3)as the control variables,the government intervention,the urbanization level,the capital intensity,infrastructure and other factors will have a different impact on the development of the service industry.in the different stages of the development of the region and the industry.Finally,combined with the empirical results and the characteristics of different provinces and industries,this article puts forward suggestions on the effective usage of FDI in service,with reasonable open policy,investment environment and talent construction included.