Study On Absorptive Capacity Of OFDI's Reverse Technology Spillover

With the growing trend of economic globalization, corporations are facing strong competition. As technology has become the key factor of the competition result, the phenomenon of technology-seeking foreign direct investment is increasingly prominent. But many countries can't be satisfied just by the passive means of "bring in" to acquire advanced technology. So they choose to invest to developed countries which possess the advanced technology. Especially with the rapid growth of emerging-country's FDI, the subject of home country's reverse technology spillover is getting more and more attention.This paper analyzed the impact factor of reverse technology spillover from the view of home country's absorptive capacity. Firstly, analyzed the mechanism of reverse technology spillover. And sum up that the technology will be transferred to home company, then to home country's relative industry, finally the home country's technology level as a whole will be improved. Secondly, on the use of the LP model, this paper studied the absorptive ability from four different aspect:technology distance, human resources, economy openness and financial development level.The empirical results showed that the China OFDI'reverse technology spillover effect is very significant. The more technology distance is, the less technology is absorbed. The level of human resources and financial development is insufficient to improve the absorption of technology spillover. The current economic openness can't help absorb the technology spillover. According to the empirical results, this paper proposed advice on the improvement of our country's absorptive ability.