A Study Of The Technological Spillover Effects Of The Foreign Direct Investment In China

Based on the New Growth Theory, this thesis offers a research on the technological spillover effects of the foreign direct investment in China, which is aimed to shed light on the relation between the foreign direct investment and our country's economic growth together with technological improvement.1) In the application of the growth model of the technological diffusion of the foreign direct investment, this thesis adopts the following six parameters: i) the personal average annual growth of GDP from 28 provinces from 1982 to 2003; ii) the average percentage of the foreign direct investment in the total investment in fixed assets; iii) the initial value of human capital; iv) the natural log of the initial value of personal GDP; v) government consumption; vi) visual regional variable. It has conclude: i ) in the process of our country's economic growth, the existence of the "catching up" phenomenon is no certain; ii) the government's consumption has a negative impact on the economic growth; iii) the favorite policies in different regions, geographical locations and human environments have a positive influence on the economic growth; iv) the technological spillover effects of the foreign direct investment is not obvious, but the combination of the foreign direct investment and the human capital is beneficial to the economical growth.2) In the application of the extended growth model constructed from the total production function, this thesis adopts six parameters such as the growth rate of the value of GDP from 30 provinces from 1995 to 2003, the growth rate of the domestic capital, the growth rate of the foreign direct investment, the growth rate of the labor force, the human capital, and the degree of the market maturity. It has concluded: i) the technological spillover effects of the foreign direct investment exists, but it is not striking; ii) the combination of FDI with human capital has a positive impact on the economic growth, which is especially true for those whose has middle degree of education; iii) the "catching up" phenomenon in the economic growth is not discovered; iv) the improvement of the maturity of market is beneficial to the technologicalspillover effects of the foreign investment in the economic growth.3) In order to see the influence of the regional conditions on the technological spillover effects of the foreign direct investment, this thesis again adopts the second model as the theoretical basis. It uses five parameters to analyze the total samples, such as the geographical location, the level of the technological ability, the condition of the facilities, and the density of the foreign direct investment. It concludes: i) in the east area, the economic growth is relevant to the technological spillover effects, while it is not the case for the middle and western area; ii) the result got after the division of the personal average GDP is similar to the former one; iii) the improvement of the technology is beneficial to the technological spillover effects; iv) to invest in areas with bad facilities helps the economic growth of that area; v) the more dense the foreign direct investment is, the more obviously the technological spillover effects take place; vi) the private departments is relative more beneficial to the developing areas.4) With the internalized technology improvement model of the foreign direct investment, this thesis evaluates the direct and indirect effects of the foreign direct investment on the technology improvement; based on the Granger's Rule, it studies the fluctuation of the spillover effects of the foreign direct investment. The former effect is found to be not obvious, while the latter fluctuation is found to be striking.5) From the research above, it can be found that the technological spillover effects of the foreign investment really exit, but not obvious. The main reasons are: i ) the restriction of the technology from the cross-national corporations; ii) the disadvantageous position of the domestic companies in the condition "market for technology"; iii) the deficiencies of talents and the environment restrict the technological spillover effects of the foreign direct investment.6) In order to strengthen the technological spillover effects of the foreign direct investment, this thesis puts forward some suggestions such as the optimization of the market environment for competition, the encouragement of the R&D investment from the cross-national corporations, the, perfection of the mechanism for research, the creation of the rational system and environment for the talents and enterprising, etc.