Research On The Influence Of Host Country Institutional Quality Factors On China’s OFDI Reverse Technology Spillover

The report of the 19 th National Congress of the Communist Party of China pointed out that the way of my country’s foreign investment is in urgent need of innovation,and the development of trade and industry is urgently needed to stimulate investment growth.Therefore,more guidance and support should be given to foreign investment.In response to a series of national policies and calls on foreign investment,China’s "going out" strategy has achieved sustained development in recent years,and OFDI is also in its heyday.At this time,how to use foreign direct investment to achieve reverse spillover of technology,thereby Improving China’s technological level has attracted much attention.In this context,the research on the influencing factors of the reverse technology spillover of foreign direct investment has become the top priority,and the relevant research on institutional quality as one of the influencing factors is relatively lacking.Therefore,based on the perspective of the host country,this paper takes institutional quality as the research object,studies the potential impact of institutional quality on OFDI reverse technology spillovers,and puts forward corresponding countermeasures and suggestions through the research results,in order to help enterprises improve the level of OFDI and better obtain reverse The overflow of technology,and ultimately the improvement of innovation ability and the progress of technology level.This paper starts with the basic principle of OFDI reverse technology spillover,and analyzes its existence,spillover mechanism and its influencing factors;secondly,it sorts out the influencing factor of institutional quality;The current situation and the current situation of the host country’s institutional quality are analyzed;then the impact of the host country’s institutional quality on China’s OFDI reverse technology spillover is tested empirically;finally,according to the impact of the host country’s institutional quality,it is aimed at how China can better obtain OFDI reverse technology.Spillover put forward thoughts and suggestions,in the hope that China’s technological level can be developed by leaps and bounds.The research results show that OFDI reverse technology spillover is affected by the institutional quality of the host country,and the four dimensions of institutional quality(including economy,politics,law,and culture)show different directions and different degrees of influence: the quality of the host country’s economic system,the quality of the political system,and the quality of the legal system promote the reverse technology spillover of OFDI to varying degrees,while the quality of the cultural system shows a significant inhibitory effect.Specifically: first,the quality of the host country’s economic system promotes the reverse technology spillover of China’s OFDI;second,the quality of the host country’s political system promotes the reverse technology spillover of China’s OFDI;third,the quality of the legal system of the host country is promoting the spillover of China’s OFDI reverse technology.Among them,the degree of freedom of property rights and the degree of rule of law can both play a promoting role,that is,host countries with high degrees of freedom of property rights and high degree of rule of law are more likely to reverse spillover technology to China.Fourth,the quality of the host country’s cultural system significantly inhibits the spillover of China’s OFDI reverse technology,that is,the greater the cultural distance between the host country and China,the less likely it is to obtain OFDI reverse technology spillover.From a regional perspective,the impact of the host country’s institutional quality on OFDI reverse technology spillovers is heterogeneous.For developed countries,the quality of political and legal institutions has a significant promoting effect,and the quality of cultural institutions has a significant inhibitory effect;The quality of China’s state,economic and political system showed a significant promoting effect.Therefore,the Chinese government should improve relevant laws and regulations,improve relevant systems,continue to encourage enterprises to "go global",and establish and improve relevant support policies;the choice of investment locations at the Chinese enterprise level should be judged based on four dimensions,weigh investment efforts,and improve investment efficiency,and strengthen its competitiveness by increasing R&D investment and talent building.