Does The Reverse Technology Spillover Of China's OFDI Exist

Since the "going out" strategy was established in 2000,Chinese enterprises have been going out and China's scale of outward FDI has as result achieved great-leap-forward development.By the end of 2015,China's foreign direct investment flow and stock were 145.67 billion US dollars and 1,097.9 billion US dollars,ranking the world's second and eighth,and achieving an average annual growth rate of 35.85%and 23.84%.While the scale of China's OFDI is increasing rapidly,the existence of the reverse technology spillover still remains unanswered and which is related to the success or failure of China's constructing the "two-way open economy".In order to answer these questions,this paper takes the economic data of OFDI stock,R&D capital stock,human capital stock and absorptive capacity of 30 provinces and cities in China from 2003 to 2014 as the object of study.Firstly,a nonlinear model is constructed to test if the reverse technology spillover is related to OFDI,followed by the empirical test and the robustness test for the existence of reverse technology spillovers in China's OFDI,and finally,a panel threshold model is build to test whether the different absorptive capacity play key role in reverse technology spillovers effect.The conclusion is as follows:Firstly,China's reverse technology spillovers are positively related to foreign direct investment;Secondly,China's reverse technology spillover of foreign direct investment does exist,and the reverse technology spillovers from developed countries is the most;Thirdly,absorptive capacity such as openness,technology gap and inward foreign direct investment play key role in the process of OFDI reverse technology spillover.Finally,the elasticity of east provinces' TFP to foreign R$D stock is higher than middle and west provinces,the elasticity of China's TFP to developed countries' R$D stock is higher than non-developed countries.