The Empirical Study On The Spillover Effect&Route Of FDI Technology In Anhui Province

Economic growth is a permanent subject of great concern by various countries and regions,especially in the background of economic globalization. Economic growth can not be separated from labor, resources, capital, social system, technological progress notably, which is considered to be the core of economic growth. The concept includes not only the narrow sense of technical innovation, as to improve labor productivity, but also cover the optimum distribution of resources, economies of scale, knowledge accumulation, technological innovation, entrepreneurial skills, institutional innovation. In an open economic environment, achieving technological progress of one country can use the help of other economies through technology spillovers, in addition to rely on outside endogenetic forces.FDI has been contributing to the capital composition of China, export, upgrading the industrial structure and employment. What’s more, it is an important carrier of advanced technology and the major route of technology spillovers. Over more than thirty years since the Reformation and Opening, China has leaped to become one of the largest FDI influx country around the world..While in the absorption of capital and improving the efficiency of capital formation, the host country promotes the local level of technology and daily productivity improvements by means of imitating the demonstration effect, market competition effects, contact effects and human resources,etc. The unconscious involuntary indirect effects,"Externalities" in the economics,is often referred to as the technology spillovers of FDI.Anhui, as an inland province of China, has been continuing to increase investment of foreign capital and foreign trade in recent years. Economic development brings increasing of its percapita disposable income improvement of infrastructure, increasing of research expenditures and educational resources inputs continually, as all promotes local enterprises to absorb FDI technology spillover better. On January12,2010, the State Council issued the latest development plan on the cities along the Yangtze River in Anhui Province, which is the first national strategy planning of regional development in Anhui since the founding of the PRC. Under the circumstance, it is particularly important to focus on wether different sources of FDI leads to positive technology spillover effects, and the overflow pathway, as well as how to seize the opportunity of boosting the development of the central region to meet the challenge.This essay made a study of the technology spillover effects of FDI in Anhui Province by use of a combination of empirical and theoretical analysis to method. First, based on the objective statistical data of FDI status in Anhui, the author analysed the relevant economic data from1993to2010according to technology spillover theory, then, make use of quantitative analysis software to build models and carry on empirical analysis. Finally, the author classified the origin of FDI into two types:Euramerican and the Asia-Pacific developed economies, and respectively made empirical analysis and comparison. The results showed that FDI has a positive spillover effect on Anhui Province as a whole, and Europe and the United States and the Asia-Pacific developed economies, the spillover effect is not very different.On the basis of above, the essay put forward by theoretical analysis to analyze effective ways to FDI technology spillovers in Anhui from four respects. The analysis showed that economic growth, the improvement of intellectual property system and the development of industrial clusters in recent years have provided favorable conditions of FDI technology spillovers. But at the same time, the factors such as lower economic issue degrees in Anhui, lack of investment in scientific research and the loss of the high-technical management talent seriously affect the possibility of technology spillovers.Finally, on the basis of empirical and theoretical analysis, this essay tables a series of proposal for the promotion of technological progress, expansion of FDI positive spillovers in Anhui and so on.