Analysis On The Effect Of Technology Progress And Heterogeneity Of China's Foreign Direct Investment

The 21 st century is an era of knowledge economy,and innovation is becoming more and more important in the fierce global competition environment.In the context of economic integration and the global market allocation of resources has become a trend,to enhance a country's level of innovation,we must grasp both domestic and foreign markets.A country can rely not only on the innovation practices of its home country,but through foreign direct investment,it can reasonably allocate limited foreign exchange reserves to obtain innovation resources from the host country and enhance its innovation capabilities.In recent years,my country's foreign direct investment has developed rapidly,and the scale of flows and stocks has expanded rapidly.But behind the vigorous development of foreign direct investment,the following problems have also arisen,mainly manifested by high barriers to entry,lack of industry policy constraints and administrative supervision,less domestic support,and a large number of foreign direct investment forms for the purpose of asset transfer appear.Faced with this series of problems,it is necessary for the state to formulate corresponding foreign investment policies.In order to achieve the goal of rationally allocating resources abroad and enhancing the technological innovation capability of the home country.From the perspective of innovation,this article examines whether foreign direct investment has promoted the technological progress of the parent company,and incorporates enterprise characteristics and industrial characteristics into the analysis framework to explore the heterogeneous factors that affect the effect of technological progress and solve the final related problems.And policy improvement to provide a little reference.The theoretical part of this paper builds a two-sector model under the short-term open economy based on Romer's endogenous economic growth model.Introduced the social output function and the home country innovation production function,and qualitatively analyzed the existence of the technological progress effect of foreign direct investment.Combined with theoretical models,several main mechanisms for technological progress caused by foreign direct investment are proposed: reverse technology spillover mechanism,technology merger and acquisition(internal integration)mechanism,results feedback mechanism,cost sharing mechanism,divestiture mechanism,demand stimulus and competition force mechanism.Finally,based on the previous theoretical analysis,the following three hypotheses are proposed: 1)Foreign direct investment has promoted technological innovation ofenterprises;2)The technological progress effect obtained by the enterprise's foreign direct investment is related to the type of industry;3)The technological progress effect obtained by an enterprise's foreign direct investment is related to the enterprise's own productivity level.The empirical part of this article tests these three hypotheses.This article demonstrates from a micro-enterprise perspective,using the integrated database of the 2011-2014 "China Industrial Enterprise Database" and the2011-2013 "Overseas Investment Enterprises(Institutions)Directory".According to whether the enterprise is making foreign direct investment,the propensity score matching PSM method is used to examine the impact of foreign direct investment on the technological level of Chinese enterprises.It also considers the factors of heterogeneous enterprises and industry characteristics,and analyzes the differences in the effects of enterprise productivity and different industries on the effect of technological progress.The results of the study show that: Chinese enterprises' foreign direct investment promotes the improvement of enterprises' total factor productivity,that is,foreign direct investment promotes their technological progress;For different industries,the technological progress effect of foreign direct investment is significantly different,and the foreign direct investment of high-tech industries can obtain a greater technological progress effect;For enterprises of different productivity levels,the effect of foreign direct investment on the technological progress of enterprises is also different.Higher productivity enterprises can obtain greater technological progress effects.Finally,based on the research,the following policy recommendations were proposed: 1)Establish and improve a "going out" policy system to promote enterprises to "go overseas";2)Increase support for high-end manufacturing and high-tech industries;3)Formulate foreign investment policies that are inclined to capable enterprises.