Study On The Reverse Technology Spillover Effect Of Direct Investment From China To The Countries Along The "Belt And Road"

Forty years of reform and opening up,China’s foreign direct investment has experienced from scratch,from less to more process.In 2013,China put forward the “Belt and Road” initiative to cut down production capacity and promote industrial upgrading,which has become another important measure to deepen the implementation of the “going global” strategy.Since then,China’s direct investment in the countries along the “Belt and Road” has also grown rapidly.By 2017,China had added a total of $14.4 B in OFDI to countries along the “Belt and Road”,accounting for 12 per cent of China’s foreign direct investment that year.Whether there is also a technology spillover effect to OFDI along the “Belt and Road”,as well as the technology spillover effect brought about by the foreign direct investment,and whether this can bring about the overall technological progress of our country Answering this question is of great importance to the continued promotion of the “Belt and Road” initiative and the development of OFDI.Firstly,this paper combs the theoretical motivation and influencing factors of FDI,and analyzes the transmission mechanism of reverse technology spillover effect of FDI in China.Then,it analyzes the development process,investment characteristics and the problems of technology acquisition of China’s direct investment in the countries along the “Belt and Road” in detail.Then,Thoreau residual method was used to calculate the Total factor productivity of each province and city in China and used as the explanatory variable The explanatory variables of the model are the domestic R&D capital stock calculated by the perpetual inventory method and the foreign R&D capital stock brought by the import trade channel,the foreign direct investment and the OFDI in the L-P model OFDI is interacted with time trends.The model is then used to test the existence of a full sample of reverse technology spillovers of OFDI in the countries along the “Belt and Road”.Finally,the economic development level,institutional environment quality and regional differences of the countries along the “Belt and Road” are grouped and regressed,and the regional differences of the home countries are grouped and regressed.The empirical conclusions are as follows:Firstly,the positive coefficient of foreign R&D capital stock obtained by OFDI through the full sample existence analysis shows that there is significant reverse technology spillover effect on the direct investment of the countries along the “Belt and Road” the stock of foreign R&D capital acquired through the direct investment channels of the countries along the route will increase the Total factor productivity of China’s domestic provinces,and the reverse technology spillover effect will be significant in the medium and long term.Secondly,through the analysis of the differences,we find that the favorable institutional environment in Southeast Asia and central and Eastern Europe has adverse technology spillover effect on OFDI in China The difference test between the economic development level of the host country is not significant and can not distinguish whether there is significant difference of reverse technology spillover effect.But in the medium to long term,the quality of the institutional environment and the level of economic development will have a positive impact on the Total factor productivity.In addition,when analyzing the regional differences of the countries along the “Belt and Road”,the reverse technology spillover effect of OFDI is most obvious in Southeast Asia,where the economic and geographical distance is closer to China and the economic complementarity is stronger There is also a significant positive reverse technology spillover effect on central and eastern Europe,but not on OFDI in South Asia,West Asia,Central Asia,the Commonwealth of Independent States and Mongolia In the medium and long term,there is reverse technology spillover effect.The analysis of regional differences in China shows that the reverse technology spillover effect of Midwestern Sectional Figure Skating Championships is more obvious than that of the Eastern Region on OFDI along the “Belt and Road”.But in the medium to long term,the Total factor productivity for OFDI in the central and eastern regions is much higher than in the Midwestern Sectional Figure Skating Championships.Finally,some policy suggestions are given according to the conclusion of the model and the empirical results.