Research Of Heterogenity FDI's Effect On Technology Progress In China

New economic growth theory considers that technological progress is the power of Economic growth. For most countries in the world, raising the self-renovation capability is major source to technological progress. But because of its own development conditions of constraints, at present, many developing countries concerned more is more advanced technology from developed countries the role of technology diffusion. Theory and practice of research has indicated that the result of FDI is high disparities in different host country. One of most important reason is different country has different endowment. It cause different FDI technology absorption capacity. As a country's economic and social development, the difference of absorption capacity is not enough to explain the reason of different effect in economic development. So many scholars remove the research perspective to the heterogeneity of FDI to explain the difference.This paper is divided into five sections:section one deals with the significance and the purpose of this study as well as its main innovations; section two reviews the literature on heterogeneous FDI's effects on economic development and technological progress; section three looks back at China's history of utilizing FDI, streamlines the effects of FDI on China's economic and technological progress and explores the industrial distribution of FDI in China; section four specifies an indicator for heterogenous FDI, establishes a regressional model and proves the different effects of FDI on China's technological advancement empirically; section five summarizes the paper, draws our conclusion and makes our proposals accordingly.