Research On China's OFDI Reverse Technology Spillover Effect Based On Institutional Quality

With the increasingly fierce global competition,especially in the context of the restructuring of global value chains and the accelerated evolution of the international direct investment policy system,identify the relationship between institutional quality and reverse technological spillovers of foreign direct investment,and explain which The mechanism of action is an important issue concerning the high-quality development of China's foreign direct investment.Whether the reverse technology spillover effect of foreign direct investment can be effectively played,the home country's economic and legal system environment plays a key role.A country's superior institutional arrangements can help reduce rent-seeking costs for corporate investment and improve financing efficiency,thereby building an efficient technical feedback mechanism for outward direct investment.At present,China's foreign investment has developed rapidly,but due to the quality of the home country's system,many regions have encountered “water and soil dissatisfaction”,“indigestion” and other phenomena when seeking technology,which limits the improvement of the competitiveness of China's enterprises to a certain extent.It can be seen that good system quality can not only maximize the role of foreign direct investment in promoting regional technological progress,but also further promote high-quality development of foreign investment.In this regard,based on the perspective of the quality of the home country system,this paper uses the 2003-2018 China OFDI inter-provincial panel data and Hansen's nonlinear panel threshold model to empirically test the four dimensions of the quality of the home country system(including education support,technology support,policy openness and intellectual property protection)on the reverse technology spillover effect of China's foreign direct investment and the characteristics of the threshold effect.The research results show that: First,the reverse technology spillover effect of foreign direct investment exists objectively,which can effectively promote technological progress in the home country,and presents regional heterogeneity under the influence of regionally differentiated institutional quality.With its superior geographical location,rich education system,advanced scientific and technological level,high-quality policy openness,and complete legal guarantee system,the effect of reverse technology spillovers in the eastern region is more significant than in the central and western regions.Second,the quality of the home country system is an important factor affecting China's access to reverse technology spillovers from foreign direct investment,and there is a threshold effect.The quality of the system in the eastern region is ahead of the central and western regions,and the central region is in the middle.The western region is at a disadvantage in terms of education support,science and technology support,and policy openness.Therefore,the government should encourage technology-seeking foreign direct investment,promote enterprises to “go global”,and improve the policy support system;provide good institutional support,improve regional education,finance,technology,and intellectual property services,and promote domestic education systems reform.Enterprises should improve the efficiency of foreign investment,innovate management systems and mechanisms,and foster new driving forces for innovation and development;enhance core competitiveness,strengthen investment in innovation and research and development,and promote talent introduction.The innovations of this article are listed as follows: first,from the perspective of research,this article examines the impact of institutional quality on reverse technology spillovers from China's foreign direct investment.Secondly,in terms of research methods,this article incorporates three channels of international technology spillovers(international trade,foreign direct investment,and foreign direct investment)into the same analysis framework,and comprehensively explores the impact of foreign direct investment on technological progress in the home country.Third,in data processing,this paper uses the non-parametric method represented by the DEA-Malmquist productivity index method to measure total factor productivity to ensure that the model results are more accurate.