Research Of Effect That FDI From Different Sources Makes To China Industry Performance

In the past 30 years,durative introduction of mass foreign direct investment reduces the constraint that key production factors such as technology and capital make to China industry development and effectively improves the performance of China industry with change of China economy.It is noticeable that lead status of main industrialization countries of west gradually gets challenge with the improvement of technology level and whole ability level of China industry after 21 century.In this backdrop,main industrialization countries gradually adjust the direct investment strategy for China.These countries' common cognition is that they more effective control technology spillover effect of direct investment for China(Peter Nolan,Chunhang Liu and Jin Zhang,2007).This means that introducing investment mode changes thoroughly,we should estimate the effect that investment motivation of FDI from different sources and change of China industry's absorptive capability make to China industry performance on theory and empirical again.It accordingly offer scientific theory basis for new(differentiation)foreign capital strategy.The paper follows traditional method of Krugman(1979),it divides FDI in China into two classifications which include main industrialization countries and Chinese Hong Kong,Chinese Macao and Chinese Taiwan on basis of researches of Du,Harrison and Jefferson(2012).Firstly,it researches the effect that investment motivation of FDI from different sources makes to China industry performance in assumption of homogeneity of absorptive capability.Secondly,it relaxes assumption of homogeneity of absorptive capability.It introduces variable of absorptive capability and estimates the effect that FDI from different sources makes to China industry performance.It tries to explain more scientific and reasonable on the problem that FDI from different sources effects China industry performance.The paper includes three parts.The first part sets up general theory of the effect that FDI from different sources makes to China industry performance and forms the theory assumption to be tested.The second part tests the effect that FDI from different sources makes to China industry performance on empirical and estimates the threshold critical value.On the basis of the preceding two parts,the third part advises on the aspect that how to plenty release technology spillover effect of FDI from different sources,improve absorptive capability of China industry and ensure foreign capital to promote China industry performance.The paper mainly finds:First,FDI of main industrialization countries whose main investment motivation is monopolization of knowledge capital makes positive effect remarkably on the performance of China capital-intensive industry at the present time,but it doesn't remarkably on that at later time,it also doesn't remarkably on promotion of performance of labor-intensive industry.Main industrialization countries keep maximal knowledge capital deposit by monopolizing exploitation and application of R&D resources and high-class human resources.They are most strict with control of technology spillover effect.The threshold effect test of investment motivation of the paper estimate shows that FDI of main industrialization countries can make positive effect remarkably on the performance of capital-intensive industry,if the threshold critical value of knowledge capital deposit is more than 19.0983%.Second,FDI of Hong Kong,Macao and Taiwan whose main investment motivation is culture convergence makes positive effect unremarkably on promotion of performance of China capital-intensive industry,but it does remarkably on that of labor-intensive industry.Further research shows that multinationals' of Hong Kong,Macao and Taiwan emphasize particularly on using culture convergence to decrease cost of labor production factor.So FDI of these regions makes obviously more contribution on China labor-intensive industry than capital-intensive industry.FDI of Hong Kong,Macao and Taiwan can make positive effect remarkably on promotion of performance of labor-intensive industry,if the threshold critical value of culture convergence is more than 71.5763%.Third,FDI of main industrialization countries makes effect remarkably on improvement of performance of China capital-intensive industry,but FDI of Chinese Hong Kong,Chinese Macao and Chinese Taiwan makes effect unremarkably on improvement of performance of China labor-intensive industry with enhancement of absorptive capability of China industry.The phenomenon is consanguineous correlation with continual enlargement of China industry scale and the improvement of whole technical level.The threshold effect test of absorptive capability shows that positive technology spillover effect of FDI of main industrialization countries is remarkable increase,if threshold critical value of manpower capital deposit is more than24.9956%,technical position distance is at threshold critical value between 1.3218 ten thousand Yuan/man and 2.5973 ten thousand Yuan/man and threshold critical value of industrial ownership structure is more than 38.1966%.Thus it can improve the performance of China capital-intensive industry.If China wants to continually promote the performance of China industry at present,it should actively actualize different foreign capital(policy)strategy and turn to quality benefit type from conventional quantity increase type resolutely.Firstly,it should enlarge technology spillover effect of FDI of main industrialization countries.China industry should have selection and emphases to cooperation with multinationals of main industrialization countries.It should quicken transfer of advanced technology on the basis of industry in existence.It should increase accumulation of high-level production factors such as knowledge and technology to promote the whole competition ability.Secondly,it should increase relationship between FDI of Chinese Hong Kong,Chinese Macao and Chinese Taiwan and Chinese mainland capital-intensive industry,it should avoid the redundant FDI to overly enters.It should encourage multinationals of Hong Kong,Macao and Taiwan using adaptability advanced technology to promote the development of capital-intensive.It should enhance industry level and increase market share,quicken the course of industry change and configuration upgrade and promote endogenesis increase motivity of China industry development.At the same time,it should adopt effective prompting policy to increase manpower capital deposit and reduce technical position distance and optimize industry ownership structure;it also should improve absorptive capability of China industry and promote its ability of obtaining technology spillover furthest.