Research On OFDI Reverse Technology Spillover Effect

In recent years,under the policy of Chinese government,Chinese Outward Foreign Direct Investment(OFDI)has become an important way to study from the foreign countries,and improve domestic productivity.According to the data analysis of authoritative departments,from 2003 to 2016,Chinese OFDI has sustained growth consecutively for 14 years.In 2016,the Outward Foreign Direct Investment flows of China was $196.15 billion,it is 72.6 times that of 2002.The service industry has become the main industry of OFDI which is $1461.5 billion and accounts 74.51% of the total amount.The related researches at home and abroad indicate that OFDI has reverse technology spillover,which has influence on upgrading the technological level of the home country.This article analyzes the implementation process of the reverse technology spillover effect of the service industry OFDI from the theoretical mechanism,and verifies the results through the empirical analysis.In the part of theoretical mechanism,this thesis analyzes the formation mechanism of the reverse technology spillover effect of OFDI from different investment methods and investment paths.In this process,the absorption capacity of the mother country has played a certain important role.In the empirical part,based on the C-H and L-P model,a reverse technology spillover effect model is constructed,then interaction items are added to analyze the effect of OFDI reverse technology spillover.Considering the characteristics of different host countries,it is divided into two parts(high technology intensive and low technology intensive).Using industry panel data from 2006 to 2016,the result shows that service industry OFDI reverse technology spillover effect is significant,but the regulation of absorption capacity is not significant.From the perspective of the characteristics of the host country,it is concluded that the reverse technology spillover effect of OFDI in low technology intensive countries is more significant than in high technology intensive countries.This result shows that China is reducing the technological gap with developed countries.At the end of the article,based on a series of previous analyses,some suggestions will be given.