Spillover Effect Of FDI In Chinese Circulation Industry

The spillover effect of FDI in Chinese circulation industry is worth concerning on the background of the changes in China’s FDI structure, especially the proportion of FDI in circulation industry improved constantly. Different regions have different industrial base and economic foundation, so does the spillover mechanism, which means that every region should use the FDI in the light of local conditions. Besides, this paper attempts to analyze spillover effects of factors. Taking into account the circulation revolution brought by e-commerce, and China continues to relax FDI threshold of e-commerce, this paper puts emphasis on discussing the effects of information level.This paper use the wholesale and retail industry as a representative sample to analyze the FDI spillovers in circulation. First, we review the institutional change and development characteristics of Chinese FDI in circulation. Through the impacts on itself and manufacturing industry, we found that there may be both horizontal and vertical spillover. Then, this paper use the related theory and spillover mechanism to build theoretical framework and empirical model. Using Stata12.0 to analyze panel data from 2005 to 2013,and get that spillover effect of FDI in Chinese circulation industry does exists. The horizontal spillover effect is more apparent than vertical spillover effect,and the eastern, central and western region is different from each other; To study the static characteristics and dynamic trend of factors, we use both conventional panel data regression and quantile regression, then we get the conclusions that the present economic development model is negative for promoting spillover effect of FDI in Chinese circulation industry. Horizontal spillover effects is sensitive to investment soft environment, the capability gap between domestic and foreign firms and market competition degree, when informatization level plays a important role in promoting vertical spillover effect.Finally, we think that China should balance the investment promotion and capital introduction in circulation industry based on the empirical results. Besides, China should make the best use of influence factors, especially promoting information construction catering to ’Internet +’strategy. The eastern region should speed up the penetration of foreign capital, the central region should focus on the use of demonstration and competition mechanism, the western region should encourage investment in all directions to promote the spillover effect to maximize.