An Empirical Study On The Spillover Effects Of Foreign Direct Investment On China's Manufacturing Industry

As a more efficient way to improve the technical level of the host country,foreign direct investment has been closely watched by a large number of developing country governments in recent years.Since the reform and opening up,China's opening up to the outside world has continued to increase,and a large amount of foreign capital has entered various industries.The manufacturing industry used to be the industry with the largest foreign capital inflows in China,once accounting for 70% of total foreign capital inflows.In recent years,foreign capital entering the manufacturing industry has continued to rise,but the actual use of FDI in manufacturing has declined significantly.In addition,the structure of foreign capital entering the manufacturing industry has also changed,and foreign capital has gradually shifted from labor-intensive industries to technology-intensive industries,which has provided favorable external conditions for China's manufacturing transformation.Therefore,how to give full play to the FDI spillover effect and realize the reform of the manufacturing industry is one of the major economic problems that need to be resolved during the economic transition period in China.First of all,in order to analyze the output level of China's manufacturing industry and various types of industries and the status quo of foreign direct investment,this paper collects relevant data and sorts out that the current manufacturing industry in China has a large output,but the output growth is weak,and the technology-intensive industry gradually replacing capital-intensive industries has become the industry that contributes the most to manufacturing output,but its output growth rate is still not optimistic.In addition,the actual use of FDI in manufacturing has continued to decline in recent years.FDI entering the manufacturing industry is mainly concentrated in technology-intensive industries,and FDI growth in other types of industries is slow.Secondly,in order to analyze the development status of China's manufacturing technology level,this paper uses DEA-Malmquist index method to estimate the total factor productivity index of manufacturing industry and various types of industries,and further decompose it into technology progress index and technical efficiency index.Through the analysis of the total factor productivity index and its decomposition index,it is found that the total factor productivity of manufacturing industry has not been effectively improved in recent years.For different types of industries,only the total factor productivity of technology-intensive industries has shown a certain degree of improvement.Finally,on the basis of analyzing the status quo of China's manufacturing output level,FDI and technology level,it is found that the reason for the weak growth of China's manufacturing output is likely to be that the technical level is difficult to effectivelyimprove.The spillover effect of FDI is considered to be the most efficient way to improve the technical level of the host country,Therefore,this paper further analyzes the existence of China's manufacturing spillover effect and the influence of various influencing factors to construct a panel data model,The results show that FDI has a positive spillover effect on the manufacturing industry as a whole and labor-intensive industries,but it is not significant,FDI in capital-intensive industries has experienced significant crowding out effects,and only FDI in technology-intensive industries has experienced significant positive spillover effects.In terms of the factors affecting the spillover effect,the quality of labor and the level of industry development can effectively promote the overall spillover effect of the manufacturing industry,while the degree of openness and capital intensity are not conducive to the spillover effect.In addition,there are some differences in the test results for different types of industries.At the end of the paper,according to the heterogeneity of the industry,find out the influencing factors that are most conducive to the spillover effect of various industries,and provide reference for the government to formulate policies.