The Study On The Reverse Technology Spillover Effect Of Jiangsu's OFDI

Since the reform and opening-up in 1978,China has begun to follow the developed country for outward foreign direct investment(OFDI),and its OFDI shows momentum of leap-type development recently.In 2015,the flow of China's OFDI has reached 145.67 billion dollars,which ranked only after the United States.Jiangsu,as an area that the export-oriented economy started early and well-developed,its scale of OFDI has always ranked top across China.By the end of 2015,Jiangsu had newly approved 880 offshore investment companies and institutions,contracted outward foreign direct investment amount of 10.304 billion dollars,distributed in 128 countries and regions around the world.Based on the review of the existing theories and literature and the analysis of the development status and characteristics of Jiangsu's OFDI,this paper carries out the empirical analysis as follows.(1)Panel data of Jiangsu's 13 cities from 2007 to 2015 is collected to calculate total-factor productivity(TFP)by data envelopment analysis(DEA)and the panel regression model is established to test the existence of reverse technology spillover effects of Jiangsu's OFDI.The results show that the reverse technology spillover effect in Jiangsu's OFDI is significant.(2)The dummy variable is introduced to divide Jiangsu province into three regions: south Jiangsu,central Jiangsu and north Jiangsu to study the regional differences in the reverse technology spillover effects of Jiangsu's OFDI.The results show that the reverse technology spillover effect is most significant in south Jiangsu,while it is not significant in central Jiangsu and north Jiangsu.(3)The Hansen's dynamic panel threshold model is applied to measure the threshold effect in terms of research and development(R&D)level,human resources,economic development level,financial development level and economic openness.The results show that there are minimum threshold requirements for other four other absorptive capacity indicators except the R&D level.Meanwhile,there is a ceiling limit threshold for economic development level,financial development level and economic openness,which means when the three indexes develop into moderate scale,the reverse technology spillover effect of OFDI would play a more positive role.According to the results of this paper,we can conclude some constructive suggestions and policy recommendations for the effective improvement of the reverse technology spillover effect of Jiangsu's OFDI on technological progress.(1)establishing and improving “going out” and OFDI policies.(2)implementing differentiated regional policies in accordance with local conditions.(3)sparing no effort to improve regional comprehensive absorptive capacity.