The Influence Of FDI Participation On The Technological Improved Of China’s Automobile Enterprises

Through a detailed review of the literature on the spillover effects of foreign technology spillovers,this paper finds that most of the literature research focuses on developed countries or mature industries in a certain country,while research on developing countries is less and has been controversial.As a representative of developing countries,since the reform and opening up,all walks of life have attracted a large amount of foreign investment,especially in the automotive industry.Therefore,this paper puts the study of foreign investment spillover effects into the Chinese automotive industry,combined with President Xi Jinping in April 2018.In the policy direction of "further liberalizing foreign-funded shares in the auto industry" proposed at the Boao Forum,using the data of 142 listed auto companies from 2007 to 2016,an empirical study on the effectiveness of foreign investment introduction in China’s auto industry,namely:foreign participation Whether it really promotes the technological progress of Chinese auto companies.Based on the review of the actual background and theoretical background,this paper combines the relevant theoretical mechanisms,proposes the research hypotheses to be confirmed,and validates them by means of empirical research.In this paper,the LP semiparametric method is used to estimate the overall technical regression of the enterprise;and the"foreign participation" is added as the main explanatory variable to study the the relationship between "FDI participation" and technological improved of China’s automobile enterprise.It is worth mentioning that this paper also studies the cumulative effect between the two variables on the basis of the previous literature,and provides a nonlinear framework for the existing research.In addition,the paper also extends the conclusions of empirical research to enterprises of different scales,different sub-sectors,different regions and different time intervals,and compares the intensity and direction of the impact of "foreign participation" on enterprises of different natures.The main conclusions of this paper are as follows:(1)FDI participation has a positive effect on the technological progress of China’s auto enterprises,and there is a nonlinear relationship between them.At the same time,whether it is relying on the flow of technology exchange between Chinese and foreign personnel to achieve the training effect,the vertical linkage effect caused by the strengthening of production cooperation between upstream and downstream enterprises,and the innovation agglomeration effect generated by the national regional policy,the effect of FDI participation to the technological progress of China’s automobile enterprises is positive.(2)There are differencet influences of FDI participation on the technological improced of China’s auto enterprises in different scales,different sub-sectors,different regions and different periods.From the perspective of enterprise scale,medium-sized auto enterprises have the largest space to use FDI to improve their technical level;From the perspective of sub-sectors,FDI has the most significant positive technology spillover effect on the whole vehicle industry,while there is a strong crowding out effect to the downstream service providers.From the perspective of the region where the enterprise is located,the automobile enterprises in the east of China can better absorb the technology spillover effect brought by FDI;From the perspective of time interval,the increase in the TFP level of FDI participation in the auto enterprise will gradually become more and more over time.