The Study Of Threshold Of Technology Gap And FDI Intra-Industry Spillover Effect

Since last century in the 1990s, in which all developing countries, China’s absorption of foreign direct investment has been in the size of the first one. There is no doubt that China has made great achievements in the last twenty inseparable from the contribution of FDI. FDI inflows to China provided much-needed capital, creating a large number of employment opportunities, especially for people from the reform and opening up closed conservative state to today’s increasingly open attitude, but also with the entry of foreign investors to open up people’s eyes about. It can be said, FDI impact on China is multifaceted. FDI is also China’s acquisition of advanced technology and management experience, channels, FDI spillover effect is the primary means of achieving this goal.High-tech industry is Strategic with pioneering features, has become a national show their technological level and competitiveness of the stage. Each country will develop high-tech industry as to achieve economic growth, and enhance the international competitiveness of an important way. High-tech industry for the promotion of China’s industrial structure upgrading, construction of an innovative country has very important significance. Foreign investment in the country’s position in the high-tech industry is very important, rational use of foreign capital for the development of the significance of high-tech industry is huge. But at the same time, entry of foreign capital will also bring some negative effects. Such as foreign-funded enterprises will rely on its own strength, the formation of monopoly, and squeeze the living space of domestic enterprises. Lack of core competitiveness of high-tech industry, independent innovation ability may also be relevant. Therefore, this article the case of FDI in high-tech industry as the research object, conduct in-depth research and analysis.The first chapter is the introduction, the article introduces the research background, significance and current research status. The second chapter describes the theoretical basis for the article. The third chapter describes the development of China’s high-tech industry overview and overview of FDI in China. The fourth chapter is the empirical analysis. This chapter is divided into two parts:the first part is the Chinese high-tech industry spillovers occur channels empirical test; second part is the technology gap affect the mechanism of FDI spillovers empirical test to the technology gap as the threshold variable, the use of Hansen (1999) proposed a panel threshold regression model empirical testing, and regression analysis of the results.The fifth chapter is conclusion and policy recommendations. Empirical analysis of the results obtained according to the conclusions of this article, and accordingly gives policy recommendations of this paper:the introduction of foreign capital, not too pursuit of advanced and cutting-edge technology; domestic enterprises should increase the proportion of R & D spending to improve their absorptive capacity.