The Analysis Of The Change In Shareholding Structure Of FDI And Its Impact On Technology Spillover

Since the opening up of China's economy,the volume of FDI has increased continuously,at the mean time,the three traditional investment modes have varied largely in their proportion.In 2007,the actual utilized-FDI volume reached USD 74.68 billion,among which,the single proprietorship accounted for 76.6%with USD 57.264 billion,while the joint-venture mode occupied 20.9%with USD 15.96 billion.It is hence concluded that the MNC prefers the mode of single proprietorship.The three investing modes that the MNC used mostly in China are:JV,cooperative business operation and single proprietorship.Nowadays,in order to keep the promise of opening and meet the demand of industry reconstruction,the Chinese government has gradually released the restrict of shareholding of off-shore companies,as a result of which reissuing of stock to increase shares and capital becomes a popular way the MNCs adopt,more and more MNCs prefer to set-up enterprises with 100%foreign investment in China.According to the statistics,in 1997, the number of wholly foreign-owned enterprises exceeded that of sole investment enterprises for the first time.Since 1998,the number of wholly foreign-owned enterprises has been more than that of JV enterprises as per the contacted foreign capital,and the number of wholly foreign-owned enterprises has been more than that of sino-foreign cooperative enterprises based on the statistics of actual utilized foreign investment capital.In the article,I would like to start from the analysis of phenomenon of single-proprietorize of foreign enterprises and then analyze the negative impact of spillover effect during the process of investment.Finally I will give empirical results to show the different impacts towards spillover effect under the two shareholding structures of single proprietorship and JV.