The Analysis Of The Technical Spillover Effect Of Foreign Direct Investment In China

The latest two decades years of the reform and opening up, our country has madea tremendous achievement in the making use of Foreign Direct Investment (FDI).However, unlike the circumstance of 1980's, at present, the main purpose ofutilization of FDI is to utilize its advanced technology to enhance the whole level ofour industrial technology. Firstly, based on some scholars' researches, this paperbrings forward that the technical spillover effect of FDI is a very important factor thataffects technology advancement of china. Furthermore, this paper analyses the fourchannels that can produce spillover effect. They are competition, imitation, contactand the flowage of labor. After having reviewed the general situation of FDI, thispaper analyses the positive effect of FDI's technical spillover and some restrictedfactors in our country. Finally, this paper gives some measures for consolidating thetechnical spillover effect. For example, we should strengthen the labor exploitation,perfect the mechanism of talent flowage, enhance the absorbency of technology,consummate circumstance of market, and encourage transnational company to set upR&D institution in china, etc.