Research On The Reverse Technology Spillover Effect Of China's OFDI

In recent years,with the overall upgrading of the opening pattern,China's outward foreign direct investment(OFDI)is booming.China has made tremendous progress in OFDI.In particular,the proportion of investment in developed countries has gradually increased.However,the traditional OFDI theory can not explain this phenomenon.Technological progress is the source of economic growth.There are two ways for a country to make technological progress,including domestic R&D activities and foreign R&D spillovers.Foreign R&D spillovers mainly includes three channels of imports,FDI and OFDI.Due to the limited technology spillover caused by FDI,OFDI has drawn more and more attention as an important channel for acquiring foreign technology spillovers.In summary,the research on the reverse technology spillover effect of OFDI in China is of great significance.First of all,we use the country panel data to establish the investment gravity model to analyze the motivation of China's OFDI.It comes to the conclusion that China's motivations are gradually diversified.The strategic asset-seeking motivation for the developed country is significantly higher than the strategic asset-seeking motivation for the developing countries.Second,we establish R&D international capital spillover model and use the data from China to analyze the reverse technology spillover effect.We conclude that there is a reverse technology spillover effect on the investment of developed countries,while the reverse technology spillover effect on the investment of developing countries is not significant.Thirdly,based on the above model,from the perspective of home country absorptive capacity,we verify the influence of various factors on the reverse technology spillover effect.R&D investment,human capital,economic openness,financial development and patent protection are all important factors that affect the reverse technology spillover effect.Finally,based on the results of this paper,we put forward some suggestions for the long-term development of our country from the perspective of the development of OFDI.First,enterprises should fully understand the importance of "going global"from a strategic perspective.Second,enterprises should choose the entry location and the entry mode of OFDI reasonably,according to their own characteristics and needs.Third,enterprises should focus on enhancing their absorptive capacity and integration ability during the implementation of OFDI.Fourth,the government should improve the technology spillover mechanism at the state and industry levels.