An Empirical Analysis Of The Impact Of FDI's Entry Modes On Technological Innovation In Host Countries

In the process of economic development,the international community generally agreed that the introduction of foreign direct investment would have a technical spillover effect on the host country.On the one hand it can make up for the gap in the funding of the host country;On the other hand,through the continuous transfer of technology by multinational companies can promote the host country's domestic technological progress.Thus,the introduction of FDI to the host country's technology spillover effect has become a hot topic in theoretical research.The way of foreign direct investment is generally divided into three types: joint venture,cooperative operation and sole proprietorship.Since the reform and opening up in 1978,China's government develop the "introduction,going out" policy,the number of China's foreign investment increased year by year,while the joint venture,cooperation and sole proprietorship of the three models in the proportion of total foreign investment is also changing.In 2014,China introduced foreign direct investment of 119.562 billion US dollars,of which 24.825 billion US dollars a joint venture,accounting for 20.76%,sole proprietorship 94.737 billion US dollars,accounting for 79.24%.Foreign investment in China is becoming more and more diversified.Different FDI entry models with different technology spillover effects,which aroused the attention of academia.However,there are few studies to analyze the effect of different FDI model on the technology spillover effect of host countries.This paper distinguishes the different technology spillover effects of joint venture FDI and sole discretionary FDI,and uses the provincial panel data of 2004 to 2014 to analyzes the influence of different entry modes on the spillover effect of technological innovation in China.The empirical results show that the joint venture FDI mainly produces the spillover effect on the technological innovation of the host country through the demonstration effect.The FDI alone generates the spillover effect of technological innovation through the competitive effect.The effect of joint venture FDI on the spillover benefit of technological innovation in host country is greater than that of sole proprietorship.The first part of this paper is the introduction,focusing on the research background and significance of the article,research framework,research focus,research methods,research ideas,related theory and literature review there are innovations and deficiencies.Introduce the writing context of the article.The second part is the relevant theory and literature review.This chapter first summarizes the relevant literatures on the theory of foreign direct investment,the theory of technological innovation and the technology related to technology spillovers,and summarizes the relevant achievements of the previous technological innovation ability,and lays the theoretical foundation of this study The Finally,the paper summarizes the literature review on the spillover effect of scholars at home and abroad,analyzes the current situation of technology spillover,that is,clarifies the direction of this paper and provides reference and guidance for the empirical research.The third part is the analysis of the impact of different FDI on the technological progress of the mechanism,the first is to analyze the introduction of foreign direct investment in China,foreign direct investment in China's development process,and its distribution in China's regional and industry.Secondly,it analyzes the influence of FDI on technological innovation.The prerequisite is that there are technical differences among domestic enterprises,the industry characteristics of the host country and the institutional environment.Under this premise,the impact mechanism is explained by horizontal correlation and vertical correlation.The horizontal relation includes three aspects: demonstration effect,competition effect and human capital flow.The vertical effect includes three aspects: forward association,backward association and human capital flow,The final formation of spillover effects depends on the absorptive capacity of domestic firms.The impact of the sole proprietorship of FDI and joint venture FDI on technological innovation is mainly from the level of the associated mechanism.The joint venture FDI has a great influence on technological innovation through the demonstration effect,and the sole proprietorship often promotes the technological innovation of the host country through the competitive effect.The fifth part is the conclusion and research suggestion.