A Study On Technology Spillover Effect Of Import Trade In Anhui To Explain How It Promotes The Economic Growth

In the open economy,one country’s technological progress does not only come from its investment in research and development,but also comes from foreign investment in research and development which spills over through various channels.The spilled foreign R&D capital stock seems more important to the developing countries which are weak in economic development and R&D investment.Firstly, the research and development of developing countries is limited by its economic level. Secondly,repeating research and development on the technologies in existence is also a waste of resource.Import trade provides a channel for technology spillover. A country’s productivity level can be directly or indirectly increased by importing advanced foreign final goods and intermediate products.What’s more,a country can get and learn the advanced foreign technology through effect of learning in doing and demonstration and training.And after absorption, imitation and secondary innovation,the country can realize technological progress and economic growth.The study of technology spillover effects of imports has been gradually in-depth since1990s.But most of these studies were carried out from the national level.This paper selects the provincial perspective, studies the technology spillover effect of Anhui’s import trade.This paper discusses the institution and impacts for international technology spillover due to the import trade from the perspective of theory combined with the actual.And then we analyze the status of the import trade and technological progress of Anhui Province.Based on these analysis,we use the extended CH model to empirically analyze the the technology spillover effect of Anhui’s import trade from two aspects,that is no considering the factors of human capital and then taking human factors into account.We generate the following conclusions:(1)The technology spillover effect of Anhui’s import trade exists.Under the condition of without considering human capital factor,the total factor productivity of Anhui will increase by0.244%when the spillovered foreign R&D capital stock grows one percent;After taking human capital factor into consideration, the total factor productivity of Anhui will increase by0.026%when the spillovered foreign R&D capital stock grows one percent.(2) The domestic R&D capital has certain positive effect on TFP growth in Anhui Province.Under the condition of without considering human capital factor,the total factor productivity of Anhui will increase by0.064%when the domestic R&D capital stock grows one percent;After taking human capital factor into consideration, the total factor productivity of Anhui will increase by0.071%when the domestic R&D capital stock grows one percent.(3)Human capital deficiencies limit the technology spillover effects of import trade in Anhui Province. When taking human factors into account,the role of domestic R&D capital stock in promoting Anhui’s TFP enhances,while the role of foreign R&D capital stock which spilled through import trade in promoting Anhui’s TFP significantly reduces. Based on the above results,this paper presents some relevant policy recommendations:expand the import trade scale in Anhui Province and optimize the import structure;raise the level of human capital to strengthen the ability of absorbing the technology spillover effect;increase the investment in Anhui Province and accelerate the pace of independent innovation.At last,this paper summarizes the whole text and and puts forward some deficiencies.This paper proposes the direction of the future research based on the deficiencies,that is:(1)The spillover effect of Anhui import trade can be compared with the neighboring provinces,so that we can recognize the disparity of the import trade spillover effect between Anhui and the developed provinces;(2)An empirical study of the import trade spillover effect of a specified industry can be made to make us realize which industry’s import trade spillover effect is weak, whereas which is relatively significant;(3)In order to obtain a more comprehensive and objective result,a more comprehensive study can be made to investigate the influence of technology spillover effect on the import trade in Anhui Province,including human capital,import penetration, trade openness and multiple variables.