Research On The Positive-going Technology Spillover Effect Of OFDI In China’s Service Industry

Since 2014,the flow and stock of China’s service industry’s foreign direct investment have reached more than 70%,becoming the main industry of China’s foreign direct investment.Under the background of economic globalization and the rapid development of service industry,the technology spillover brought by transnational investment in service industry promotes the development of international service industry and the deepening of international division of labor.The performance of technology spillover in service industry is also different in different host countries and different service industries.With the increase of the scale of foreign investment in China’s service industry,taking China as the technology spillover party,there is still a lack of research on the spillover effect of China’s service industry OFDI on the host country’s technology.Based on this,the research on the positive-going technology spillover effect of OFDI in China’s service industry has important theoretical and practical significance.Firstly,this paper analyzes the current situation of China’s service industry OFDI from three aspects: investment scale,industry structure and regional distribution.It is found that China’s service industry has a large OFDI scale,a wide but relatively concentrated investment field,a large gap in investment scale between different service industries,investment areas have the characteristics of "double concentration",and the investment in developed economies shows a downward trend.Secondly,it analyzes the mechanism of OFDI technology spillover in service industry:(1)spillover process.This paper analyzes the relationship between investment and technology spillover from the aspects of demonstration imitation effect,competition effect,industrial correlation effect,human capital training and flow effect.It is found that the technology spillovers of OFDI in service industry are different in different service industries and different host countries.(2)The influencing factors of the absorption process on technology spillover include the level of economic development,financial development,technology,formal system quality and service industry openness of the host country.Third,based on the Malmquist index method of DEA,the TFP of the host country’s service industry is calculated to provide explanatory variables for the empirical study.Fourth,it makes an empirical test on the positive-going technology spillover effect of OFDI in China’s service industry.Panel Tobit inspection displays that China’s service industry OFDI has no significant technology spillover effect on the host country as a whole,but it has a positive technology spillover effect on developed economies and no significant technology spillover effect on developing economies;OFDI in China’s service industry can have a positive technology spillover effect on the productive service industry and high-tech service industry of the host country,but it is not significant on the living service industry and medium and low technology service industry of the host country;The threshold test shows that there is a single threshold effect in the economic development level,financial development level and technical level of the host country,there is a double threshold effect in the quality of the formal system of the host country,the opening level of the service industry of the host country does not produce a threshold effect,and the OFDI technology spillover of China’s service industry presents a nonlinear effect,and the performance of developed economies in the absorption link is better than that of developing economies.Finally,based on the theoretical analysis and empirical research results,this paper puts forward relevant policy suggestions to China for promoting the positive-going technology spillover effect of OFDI in China’s service industry: Provide policy guidance and support,strengthen bilateral investment exchanges,and achieve win-win results;Formulate differentiated investment strategies according to the differences of host countries;Adjust the investment structure of service industry and adopt diversified investment strategy.