The Impact Of Technology GAP In Manufacturing FDI Spillovers

With globalization and international economic cooperation and exchange opportunities for increased foreign direct investment plays an increasingly important role in economic development of developing countries and sustainable development. FDI inflows as a big country, China from the beginning of the1990s, the development of a variety of preferential policies to attract foreign investment, the introduction of foreign investment, while providing a much economic development funds, while promoting local productivity through the introduction of advanced technologies and management methods improved. For FDI study, researchers focused on the industry’s past, overflow, but with further research, scholars have gradually found between FDI spillover industry plays a more important role. Therefore, this article from both industry and inter-industry comprehensive studies of FDI spillovers.In summary, based on previous studies, this article will focus on the study of different skill levels between the Chinese industry and industry groups FDI technology spillover effect. In theoretical research on the mechanism of FDI spillovers in-depth analysis, including theoretical models overflow, the overflow process, overflow channels Mechanism. Empirical research, using2005-2010Statistical Yearbook29manufacturing industry panel data empirical analysis shows the existence of the manufacturing industry level overflow., forward and backward overflow,then the per capita capital intensity ratio (K/L) as a proxy for the technology gap technology group, they were the size of the gap between different groups of technical econometric analysis. Through the three regression model F-test, LM test and Hausman test to determine the optimal fixed effects model regression model. After quantitative analysis, the following conclusions:Firstly, on the whole, foreign direct investment in the country had a significant spillover effects, specifically the level of negative spillover, are not obvious to the overflow before and after being obvious to overflow.Secondly, in the case of grouped, the technology gap is negative group level overflow, overflow and positive forward after being obvious to overflow; technology gap in the level of the overflow group is negative, the more obvious positive forward after the spill, and positive spillover; technology gap between the level of the overflow group is positive, forward and backward overflow.Compared with the measurement results of the overall industry, the technical gap between the level of the group experienced a positive spillover effect, the technology gap in the group had a significant positive before the spill, the obvious positive group occurred after the technology gap to overflow.From the above empirical studies have found that FDI into China’s manufacturing industry to produce different levels of industry and inter-industry spillover spill. In order to better promote China’s FDI utilization on the need to strengthen domestic enterprises and foreign-funded enterprises associated with the contact. To this end, the government can be adjusted from the following aspects. First, distinguish between different sectors of FDI, implement differentiated strategies to attract investment; Second, concerns and promote technology spillovers between industries; Third, adjust foreign policy. Through these measures, the real advantage of the entire manufacturing sector in terms of the sound development of foreign investment, thus improving the overall level of economic development.The innovation of this paper is to focus on the study of theoretical and empirical research between the FDI sector, the choice of panel data, and pick out the technology gap between the entry point as a basis for the industry group, while the input-output table analysis and FDI related theories combined upstream and downstream industry from the perspective of a former research associate FDI between the industry and the spillover to post.