Research On Measurement Of FDI Technology Spillover Effect In Chinese Automobile Industry

Since the reform and opening up, China auto industry has been rapidly developed.The automobile industry continues to expand with the technical level constantly improving.At present, the opening degree of China automobile industry can be seen as the mostmature industries, especially the entry of foreign capital has had a significant impact on theautomobile industry technological progress, what also determines China exist domestic andforeign capital competition in the automobile industry,the two capital interact during theopteration.Because of the nature of pursuiting maximum profit,the foreign investmentmust block the core technology to prevent the proliferation of technology,and keep thetechnology gap between domestic and foreign enterprises,so as to squeeze domesticcapital,seize the market,and grab high amount of monopoly profits. Foreign investment inthe automotive industry needs the foreign help to seize the opportunity, seek furtherdevelopment, and enhance technical level, which is the focus of concern in the industry fora long time. Therefore, under current conditions, discussing China’s auto industrytechnology spillover effect of foreign investment occurred, measuring this effect, especiallyusing empirical methods to examin the influencing technology spillovers has a veryimportant significance for the automotive industry to fully exploit technology opportunitiesbrought by foreign capital.This thesis consists of seven chapters, the general idea is:First, tracking the literature about the spillover effects of domestic and foreignresearch,and systematicly analizes the technology spillover effect of domesticautomobile industry achievements. Secondly,from the point of international view, I willanalizy domestic, foreign capital flow and layout,and the Chinese automobileindustry development research,after that, using theoretical model and empirical model tostudy the measure of Spillovers of FDI, and China automobile industry data a, the analysisof main factors influencing technology spillovers from automobile industry foreigncapital on the basis of Subsequent studies aimed at these factors, in depth analysis ofthe occurrence degree oftechnology spillover effect of foreign investment, and puts forwardsome countermeasures and suggestions.The research methods of this thesis can be divided into two categories. The first one istraditional literature research, the other one is modern demonstration research. When usingthe two methods, at the same time, timely insert comparative research method. The points of innovation of this thesis are mainly the following four aspects:(1).Thefirst aspect is establishing a relatively complete analysis framework about the measure oftechnology spillovers of foreign capital to automotive industry on the basis of systematicanalysis of the latest research results both at home and abroad about FDI technologyspillover effect, and analyzing on the basis of measurement, eventually concluded that themain factors of Influencing foreign capital technology spillovers are Indigenous carindustry enterprise’s technology appealing ability and the auto industry policy.(2).Then,use the empirical method to study the influence degree separately. It is cutting-edge to carryout systematic research of foreign auto industry technology spillovers in the relativedomestic research field.(3).The third aspect is the innovation of establishing a measuremethod of auto industry technological spillover. In the relative researches, they mainly useeconomic output as interpreted variable to measure the technology spillover effect offoreign investment, and some scholars use the productivity of domestic enterprises toimplement measure target. Except using The output of the auto industry to explainedvariable, this thesis also set up the record model about explaining the results of patentauthorization to measure the main factors influencing the output of science and technology.The relevant researches about putting the output of science and technology into theeconometric model are pretty rare.(4).The last one is Quantitative research on how autoindustry policy changes influence the foreign technology spillovers by setting up the modelof FDI technology spillover policy. There is an innovation in this field to some extent.The Deficiencies of this thesis are shown in the two aspects: The one is the lack oftheoretical basis of technology spillovers of foreign capital. There have not formed themainstream theory to explain the problem both at home and abroad, but just obtain Thecorresponding knowledge by empirical research. All the above reasons lead to theinconsistent interpretation of the Technology spillovers of foreign capital. Therefore, theresearch of this thesis mainly use Empirical study to explain the technology spillovers offoreign investment of the auto industry and its influencing factors by building Experiencemodel but not discussing the theories of Technology spillovers of foreign capital in this area.The other is that the massive existence time of foreign investment in China is short, we cannot get data about the auto industry because of the short time, and it is only thirty yearsfrom the reform and opening up to the present. All in all, the quality of data about autoindustry will influence the scientificity of the results, though the experience model is reasonable.The conclusions of this thesis are divided into four groups: The first is the evolution offoreign direct investment function in the auto industry. From the reform and opening up tonow, the capital scale, car production and the technologies of the car industry have madegreat progress. The reason of this kind of progress is partially because of the contribution offoreign direct investment. For instance, in the80’s, the main function of the foreign directinvestment into is to alleviate the difficulties of insufficient funds in the industry, playingthe role of funds; When entering the90’s, the foreign direct investment make funds andtechnology functions into full play, it is an obvious dual function. Later, after2000, with thedevelopment of China’s automobile industry, the dependency of Foreign direct investmentin capital function is on the wane, and develop the auto industry mainly rely on theadvanced technologies. Therefore, at that time, the foreign direct investment plays a role oftechnology. In the aspect of technology acquisition, In addition to automotive multinationalcompanies direct transfer of technology into the subsidiary, also through the technicalspillover effects to promote the development of domestic enterprises and the fastdevelopment of auto industry. The second is that the foreign direct investments actuallyhave technological overflow effect on domestic enterprises. The main proof of thisconclusion is no matter the productivity model or output model, all can prove that foreigndirect investment and maintain positive relationship between the technological progress ofdomestic enterprises, and the relationship is also very significant. In addition, the autoindustry of FDI technology spillover effect generated by the periodic characteristics, mainshow is the high technology spillover before2000, and that after more than10years, thetechnology spillover effect has a tendency to decrease. The third is the empirical results byUsing phase inspection, scientific research spending to explain the variable show the majorinfluencing factors affecting the car industry foreign direct investment in technologyspillover effect of local companies are technology absorption capacity and foreign tradepolicy. After a separate study of the two types of policy, the stronger the capacity ofdomestic enterprises on foreign technology absorption is, the higher the extent of theproduce technology spillover effect of foreign direct investment is, and the more thesignificant degree is. The more open the foreign trade at the auto industry is, the greater thedegree of produce technology spillover effect of foreign investment is, and the moresignificant the effect is. The forth is that throughout the research achievements of foreigndirect investment technology spillover effect both at home and abroad, they are mainly based on empirical research, and has not formed the mainstream theories to explain them.Therefore, How to set up a theory to explain foreign direct investment technology spillovereffect should become the main direction of future research in this field.