Study On Technology Spillover Effect Of FDI In Chinese Industrial Sector And Its Influencing Factors

Absorbing inward FDI is one of the important ways to promote the technological progress of China. This study focuses on technology spillover from FDI in China’s industrial sector through the comparative analysis of technology spillover from international trade, technology spillover from inward FDI, independent research and development of three way of technological progress. The empirical test is made with panel data from industrial sectors in china and the result shows that R&D is a major driving force of technology progress in china, technology spillover from inward FDI contributes more to technology progress than from international trade. At the same time, the empirical test on the four factors:the industrial sector export orientation of domestic enterprises, technical gap, capital intensity and enterprise scale influencing technology spillover from inward FDI in the industry sector, show that deep technology gap, high level of the internationalization of enterprises, high capital intensity, help technology spillover from inward FDI in China, while the scale of domestic industrial enterprises have no significant impact on the technology spillover from inward FDI.According to the results of the empirical tests, this study puts forward relevant policy recommendations:stick to selectively expand the size of the introduction of FDI to improve the quality of inward FDI, promote the internationalization of domestic enterprises, so as to promote technology spillover effect from inward FDI in China’s industrial sector.