The Influence Of The Technology Spillover Effect Of International Direct Investment On China’s Economic Growth

Since the1980s, the international direct investment has entered a sustained and rapid growth period, and gradually become the main way of international investment, up to now, the economics profession has reached a basic consensus that the foreign direct investment has technology spillover effect, but whether the technology spillover effect works depending on the host country’s economic conditions, if the host countiy’s economic development level and its macroeconomic indicators have ability to absorb the international direct investment’s technology spillover effect, the international direct investment will promote the country’s economic growth, if these indicators have no absorptive ability, the international direct investment won’t help the host country to reach the purpose of promoting economic growth.For China, since China’s reform and opening up, participating in the activities of the international direct investment is becoming more and more frequent. On the one hand, China has gotten great achievements in attracting foreign direct investment and has been attracting most foreign direct investment in developing countries since1993; on the other hand, generally,outward direct investment grew slowly since1978, and it got rapid development after2005, but compares to the scale of attracting foreign direct investment, there is still a large gap.Interestingly,the development of China’s participation in international direct investment are just golden period of China’s rapid economic growth, so whether there is a kind of correlation between them become the most directive question, this is also the starting research point of this paper.This paper divides the technology spillover effect of international direct investment into technology spillover effect of foreign direct investment and the reverse technology spillover effect of outward direct investment, studies the relationship and influence mechanism between the international direct investment and economic growth with the theory analysis and the empirical research method. First of all, through improving the old theory and constructing mathematical model found that the international direct investment promotes economic growth through technology spillover effect; Secondly, combining with China’s specific conditions, studies the relationship and action mechanism between foreign direct investment and China’s economic growth by empirical test, then studies the relationship and action mechanism between outward direct investment and China’s economic growth by empirical test.For technology spillover effect of foreign direct investment’s influence on China’s economic growth. Firstly,this paper found that there is a kind of positive correlation between foreign direct investment and China’s economic growth through the cointegration analysis. Secondly, under the background of economic growth effects of foreign direct investment, studies the human capital indicator and R&D level indicator’s absorptive ability of technology spillover effect. Test results show that the medium human capital can absorb the technology spillover effect and promote economic growth, but this kind of absorptive capacity is not significant; show that the higher level human capital also absorb the technology spillover effect and have a significant impact on economic growth, and the absorptive capacity of technology spillover effect of higher human capital indicator is greater than medium human capital indicator. In these three indicators which represents R&D level, the national R&D spending indicator, national finance technology spending indicator can absorb the technology spillover effect, but absorptive ability is not significant, the basic research spending indicator can’t absorb the technology spillover effect. In addition, according to the "Threshold effecf’model test results show that there is a threshold between the technology spillover effect of foreign direct investment and the technology absorptive capacity of the medium and higher human capital indicators, national R&D spending indicator.The threshold level of the above three indicators respectively is:0.0684,0.0176,0.0023.For reverse technology spillover effect of outward direct investment’s influence on China’s economic growth. First of all, the cointegration analysis results show that there is a positive correlation between outward direct investment and economic growth. Then, studies R&D level indicator, human capital indicator, financial development level indicator and economic structure indicator’s absorption of reverse technology spillover effect. Test results show that domestic R&D level indicator can absorb the reverse technology spillover effect of outward direct investment in China and have a significant impact on economic growth; the personnel of science and technology indicator and R&D staff indicator which represent the human capital level have strong ability to absorb reverse technology spillover effect and have a significant impact on economic growth.College students indicator also can absorb the reverse technology spillover effect, but its ability is not significant, generally,the R&D staff indicator’s absorptive ability is stronger than the personnel of science and technology indicator and college students indicator.As the representative of the financial development level,the financial efficiency indicator and financial depth indicator also have certain absorptive ability of reverse technology spillover effect, but the ability is not significant. As the representative of the economic structure,the high-tech industry indicator and the industrial development level indicator have the strong absorptive ability of the reverse technological spillover effect, and have a significant impact on economic growth. Comprehensive comparison, the absorptive capacity of reverse technology spillover effect from strong to weak in turn is economic structure, human capital, domestic R&D level and financial development level.Among these indicators, the industrial development level has the strongest absorptive capacity,the absorptive capacity of financial efficiency indicator is the weakest, this results also happen to conform to our country’s present situation that the industrialization level enhances unceasingly and the financial market development lags behind.Finally, combining with the present situation of foreign direct investment and outward direct investment and the absorptive capacity of these indicators, the paper gives some policy recommendations.