The Impact Of OFDI Reverse Technology Spillover On China’s Industrial Upgrading

With the implementation of China’s accession to the World Trade Organization and the "going out" strategy,the pace of Chinese companies going overseas has gradually accelerated.The scale of foreign direct investment has begun to grow rapidly.China has become one of the largest investment countries in developing countries in 2016.At the same time,China’s economic development is facing a bottleneck period.The Chinese are gradually realizing that the extensive economic growth at the expense of the ecological environment is facing serious challenges.Industrial structures with low technological level,uneven industrial distribution,and unreasonable structure have become important issues that constrain economic growth.By investing in advanced economies,advanced knowledge,technology,and management experience can be learned to improve the technological level of the home country,and thus promote the industrial optimization and upgrading of the home country.Therefore,this paper takes OFDI reverse technology spillover as the entry point,studies its relationship with China’s industrial structure,and then puts forward targeted opinions for promoting China’s industrial upgrading.Domestic and foreign scholars’ research on OFDI reverse technology spillovers mainly focuses on the existence,transmission mechanism and influencing factors.There are few studies on OFDI reverse technology spillovers and home country industrial upgrading,and mainly focus on industry research,that is,the relationship between technology spillovers in various industries and their industry productivity.There is still relatively little research on the national level and at the regional level.Therefore,this paper studies the relationship between OFDI reverse technology spillovers and industrial upgrading in China and various regions with data from the provincial level in 2003-2015.On the one hand,this paper analyzes the scale,location selection and industry selection of China’s foreign direct investment,and summarizes the current situation of China’s foreign direct investment.On the other hand,through the increase of the value of the three industries in China,the proportion of the employment and the changes in the employment population,we analyze the changes in China’s industrial structure and industrial level.At the same time,the trend of foreign direct investment is compared with the trend of industrial structure,and the internal relationship between the two is analyzed to lay the foundation for the subsequent model design.OFDI reverse technology spillover promotes the transformation and upgrading of home country industry by upgrading the technology level of home country enterprises.First of all,the enterprises in the investment country obtain the adverse technological overflow of OFDI through direct utilization of research and development achievements,R&D cost allocation,absorption of research and development elements and feedback of research and development benefits.After that,reverse technology spillover promotes the improvement of industrial level and the optimization of industrial structure level through the supply and demand structure channel,technical structure channel,trade structure channel and labor flow channel,and promotes the industrial upgrading of home country in all aspects.The model of OFDI reverse technology spillover and industrial upgrading is based on the L-P model.For the measurement of industrial upgrading,the two indicators of industrial structure level and industrial level are selected to comprehensively measure,so that the empirical results are more credible.In addition,from the perspective of technology absorption,considering the factors that affect the absoxption of technology,it will affect the industrial upgrading of a country by affecting the reverse technology spillover effect of OFDI.Therefore,the four factors of technology gap,R&D investment intensity,human capital level and openness level are selected as the factors affecting the absorption of OFDI reverse technology,and the interaction items with OFDI reverse technology spillover are included in the model.A comprehensive investigation of the impact of OFDI reverse technology spillovers on China’s industrial upgrading.The conclusions of this paper are as follows:Firstly,OFDI reverse technology spillover has a positive effect on the optimization of industrial structure and upgrading of industrial level in China and other regions.Second,the interaction terms of these four factors have obvious differences for the optimization of industrial structure levels and industrial levels in China and various regions.Thirdly,the influence of the same influencing factor on the industrial structure and industrial level of a certain region is different,so it can be concluded that the same factor has different effects on the level optimization of industrial structure and the upgrading of industrial level in the same region.Finally,after summarizing the conclusions from the measurement,in order to better play the reverse technology spillover effect of OFDI to promote the upgrading of China’s industry,this paper puts forward targeted opinions from the three levels of enterprise,industry and country.