The Study Of The Relationship Between FDI Spillover Effect And Technological Innovation In China

After the reform and opening up,China put forward the slogan of "market for technology",and formulate relevant preferential policies to attract foreign investment to promote the development of domestic economy.In 2015,China's actual use of FDI has reached 126 billion 270 million U.S.dollars,has become a veritable international investment big country.However,has China reached the "market for technology" purpose over the years?Is there a technology spillover effect of FDI in China?Many scholars have carried on the research to this question,but obtained the inconsistent conclusion.With the deepening of the research,scholars believe that the spillover effect of FDI is related to the absorptive capacity of the host country,and the absorptive capacity of the host country often has a nonlinear threshold characteristic when it affects the FDI spillover.Firstly,through using cointegration analysis,VEC and Granger causality test,this text explore whether there is spillover effect on technological innovation in China.The results show that FDI spillover effect is not significant,while local technological innovation reduces the technical advantage of multinational companies,foreign investment will decrease.Then,base on four aspects of research and development expenditure,the level of human capital,the level of economic development and economic openness,this paper used balanced panel data of 30 provinces in mainland China by 2001-2014 except Tibet to established a panel threshold model and found each proxy absorptive capability has a double threshold effect.With the development of the economic development level,the spillover efficiency of FDI presents the inverted U type,while the R&D expenditure,the level of human capital and the degree of economic openness across a threshold,FDI spillover efficiency will have a promotion.Because of the previous studies focused on the progress of technology,there are few researches on the technical innovation,this paper enriches the research results of FDI's spillover effects on technological innovation.At the same time,the panel threshold regression can be used to overcome the problem of the existence of threshold effect and the reliability of threshold estimation in the previous studies.Finally,based on the empirical results,this paper puts forward a series of policy recommendations in order to provide some reference for the government's planning.