Research On Reverse Technology Progress Effects Of China Through Outward Foreign Direct Investment To The United States

Thanks to the development of national economy and government policies, China's foreign direct investment began to grow vigorously after 2000. Meanwhile, the United States, as the six largest destination country, is becoming a knockout in the status of China's foreign direct investment.This paper, based on the predecessors' achievements, tentatively tries to prove the existence of Reverse technology Progress Effects theoretically and practically from the perspective of OFDI to the United States, which provides a new idea for the research of it. Firstly, the paper gives a review of some document literature about the Reverse Technology Progress Effects, and pointed out three shortages: experience research, with very few scholars could drive the effects theoretically; ignoring the contribution of IFDI when constructing the model; and with weak realistic significance for taking the total OFDI rather than the OFDI to a certain country as the research objective. Then the paper proves the existence of Reverse Technological Progress Effects theoretically for the first time on the use of MacDougall Model and Cobb-Douglas Production Function. After that, on the basis of the analysis of the situations about China's technology innovation and OFDI to the United States, the paper revises the relevant model and tries to prove the existence of the Reverse Effects practically. As a follow, the paper analyses the mechanism and influencing factors of it. Finally, according to the results of the theoretical analysis and empirical study, the paper gives the suggestions to improve the Reverse Technology Progress Effects of China through OFDI to United States, which is to improve the abilities of access and absorb American R&D resources.