Research For Spatial Limitation Of FDI Technology Spillover In The Yangtze Rier Delta

At the beginning of 90's, foreign businessmen have more focused on China, which is the most populous country in the whole world. Entering the 21st century, China's FDI still distributes much more in east than in west, but the important regions have been changing gradually. Pearl River Delta, which was the first choice of foreign investors, is replaced by the Yangtze River Delta. As the cradle of advanced technology, the Yangtze River Delta radiates High-Tech to other nearly regions, and influences the growth of economic of those provinces. Nowadays, it has proved that technology spillover effect does generally exist, but foreign researches about spatial distance limitations on the technology spillover are rarely seen, not to mention the domestic studies. Thus, this paper is of great significance in theory. Besides, with the rapid development of communication technology today, the global informationzation has come true in early time, people can get no-cost update-news and acquire the most advanced technology in real time. Based on this condition, technology spillover may not be restricted by spatial distance, and produce the same extent spillover effect to other regions. Therefore, researching on this subject will be beneficial for our government to revise the current development strategy and take necessary measures to improve the approach of learning new high-tech.. So, this paper also has important practical significance.The paper gives a test on the spatial distance limitations of FDI technology spillover effect. Author establishes the linear regressive model to calculate the extent of other provinces'absorbing FDI technologies in the Yangtze River Delta. The result shows that the technology spillover of FDI from the Yangtze River Delta is significant; Furthermore, the technology spillover of FDI will decrease constantly as the distance increases; The learning ability of local human capital will bring in positive influence for absorpting extraneous technology. At last, based on the conclusions, the paper gives some relate suggestions to the development direction of FDI in China.