Foreign Direct Investment Spillover Effect On The Output Of Pharmaceutical Industry In China

The spillover effect theory is an important part of the foreign direct investment research.In the context of economic globalization,this theory can help Chinese enterprises to better utilize foreign capital,increase industry output.As a basic industry,pharmaceutical manufacturing is also one of the important industries related to people’s livelihood.As the second market in the world,the pharmaceutical industry is still in a stage of rapid development.Being able to better utilize and absorb the advanced experience of developed countries can enhance the performance,benefit patients,and help to practice "Healthy China2030".This paper takes the pharmaceutical manufacturing industry as the research object,analyzes the impact of foreign direct investment spillover effects on the entire industry from the perspective of industry output.Firstly,introduce the theory about foreign direct investment and the industry background.Then use the panel data from 2009 to 2017 to conduct an empirical analysis for the theoretical viewpoints in the paper.The empirical results show that,foreign direct investment does have a positive spillover effect on pharmaceutical industry in China.Meanwhile this effect can be reflected in the increase in the total output of domestic enterprises in the industry.It’s transmitted through R&D activities,demonstration effects and personnel flow.While the competition brought by foreign enterprises does have a negative but slight impact on the output.For rebust test,we analysis the data by region east,middle and west.The conclusion is the same with mentioned above.Finally is the suggestions.While continuing to use FDI,it is also necessary to encourage enterprise innovation,optimize the human resource system,so as to better promote the development of the industry.