Study On The Technology Spillover Effect Of FDI In Shandong Province

Foreign Direct Investment(FDI)is an important channel of the international technology diffusion. Being the primary pattern of the flowage of international capital, its technology spillover effect on the host country has attracted more and more concerns of domestic and abroad scholars.In the times of economic globalization, FDI plays a great role in the technology progress and economic development. FDI from the developed countries not only improve the shortage constraint of capital in the host country, but more important, it can bring technology spillover and progress to improve the production efficiency in the host country. However, in the developing process, several new trends,such as the localization of research and development institution, the reinforcement of the monopoly of international technology and so on, have emerged gradually, which lead the new change and new displaying ways of the mechanism of technology diffusion and constraining factors. Therefore, the research on international technology diffusion caused by FDI is of important theoretical value in enhancing technology diffusion theory in home and abroad and filling the relevant blank.Since 1979 Shandong province began to introduce FDI, especially in the 1990s, FDI has grown rapidly in quantity, scale and the speed. FDI has made great contribution to the operation and development of Shandong economy. It not only brings the demanding capital, technology and management experience, employment opportunities and improve the industry constructure of Shandong. It has gradually become one of the dominating factors of the technology progress and economic growth in Shandong to absorb FDI and utilize international technology diffusion. This paper firstly analyze the channel of technology diffusion and its constraining factors and then make empirical test on the technology spillover effects in different parts of Shandong by improving and expanding CH model and using the panel data of domestic R&D and abroad R&D and analyze its result. Finally, based on the theoretical and empirical analysis, this paper put forwards the measures and advice to advance the economic development of Shandong province, which is of significant value to improve the general technology degree in Shandong province and the harmonious development of different areas of Shandong.