Research On The Relationship Between FDI And The Development Of High-tech Industry In China

With the further development of economic opening degree in China, the development of high-tech industry is very rapid; the scale keeps expanding, and has grown into a leading industry to promote our country’s economic growth. In 21 st century, with the development of the economy and the market opening, our country has become the largest recipient of FDI. And high-tech industry is a very intensive area which accepts FDI and sets up R&D institutions. Utilizing FDI, the high-tech industry in our country has obtained rapid development. At the same time, with the improvement of domestic high-tech industry, the scale of FDI which high-tech industry attracts is bigger and bigger. So, if there is a certain interaction between FDI and the development of domestic high-tech industry? Namely FDI can improve the level of high-tech industry in China and domestic high-tech industry can attract FDI. From the theoretical and empirical analysis, this paper does some research.First, FDI theory and the concept of high-tech industry have been described and then the paper analyzes the situation about domestic high-tech industry using FDI from scale, invested field, segment and region four aspects, finds that as the level of high technology industry develops, the scale of the FDI into the high-tech industry also gradually expands, there is a correlation between them. On this basis, this paper analyzes the mechanism of interaction between FDI and high-tech industry, namely, FDI will bring high-tech industry funds, advanced technology and management experience, provides supports for its development; On the other hand, with the development of high-tech industry, the domestic investment environment gets further improvement, so it will attract more FDI to enter. Then VAR model is constructed, uses the panel data of high-tech industry’s 15 segments in 2000-2013, and analyses the relationship between FDI and the development of domestic high-tech industry. The result shows that:there is a certain interaction between FDI and the development of domestic high-tech industry. The positive role of FDI can be reflected after a certain period of time, and high-tech industry’s attraction to FDI is related to its development level, the higher the level, the greater the attraction. To make full use of the positive role of FDI, not only should hold on the FDI introduction, the most important is to improve the independent innovation ability of high-tech industry in China. On this basis, this paper puts forward relevant policies and suggestions on how to realize the positive interactive development between FDI and the high-tech industry in our country.