Four Dimensional Distance On The Impact Of China’s OFDI Reverse Technology Overflow Effect Research

China joined the WTO in 2001.As an emerging economy,China has brought vigor and vitality to the global economic market.Since China’s accession to the WTO,it has always held high the banner of economic globalization,insisted on promoting the development of China’s OFDI,built a platform for OFDI step by step,broadened the scale of investment and improved the quality of investment.In the past ten years,China’s OFDI has developed by leaps and bounds,with an average annual growth rate of 30 percent.The host countries with large fdi volume are mainly the United States,Australia,Hong Kong,ASEAN,The European Union,Japan,Russia and so on.As the home country of investment,China’s OFDI tends to attract more developed countries with a higher level of scientific and technological development towards high-tech regions,which can be summarized as the type of technology seeking in OFDI.So when we choose the association of south-east Asian nations(asean)and the technical level is relatively low countries,such as Russia,geographical advantages,economic development level,system and culture similarity is the key driving force,and cultural,geographical,economic and institutional factors of the four dimensional distance can in turn affect China’s OFDI reverse technology overflow,and through the mechanism of how to realize,all these problems is the focus in the study of this paper,for our country and even the developing countries in exploring the road on the process of the foreign direct investment has the vital significance,for our country how to better get the reverse technology overflow provides advice.Based on the theory of international technology spillovers and foreign direct investment on the strategic management theory,on the basis of reviewing the related literature,the use of 2007-2015 China’s OFDI on 96 countries(regions)of panel data,using fixed effect method to make empirical test,analysis of China and the host countries,cultural differences and geographical distance gap in economic development and institutional differences between the four parts from the impact on China’s OFDI reverse technology overflow;Secondly,in order to further test the robustness and reliability of the model estimation results,this paper changed the measurement index of OFDI reverse technology spillover to conduct the robustness test.Finally,in order to clarify the mechanism of each distance factor on the spillover effect of China’s OFDI reverse technology,this paper added mediating variables,such as cultural stringency,logistics performance,innovation ability and technologymarket perfection,to make a mechanism test to further verify the mechanism and path of action of this paper.The results show that the cultural distance has a significant negative impact on the spillover effect of China’s OFDI reverse technology.The farther the host country is from China’s culture,the more likely the host country is to avoid uncertainty and respond to China’s investment activities with a high degree of cultural rigor,making it difficult for the spillover effect of reverse technology to play its role.The geographical distance has no significant impact on China’s OFDI reverse technology spillover,which may be due to the gradual maturity of the construction of global logistics system,which saves transportation costs to a greater extent,thus weakening the relationship between the two.The economic distance has a significant positive influence on it.The strong economic strength of the host country is accompanied by the accumulation of technological and innovation strength,and the innovation ability,as an intermediary variable,has a profound influence on the spillover of China’s OFDI reverse technology.The institutional distance has a significantly negative impact on it.The smaller the institutional distance between the host country and China is,the more likely it is to have a higher degree of technology market perfection,thus having a positive effect on China’s OFDI reverse technology spillover effect.Based on the results of theoretical and empirical analysis in China’s foreign direct investment should be comprehensive measuring four dimensional distance factor,strengthen the understanding and communication of the host country,to build diversified and various international cultural exchanges platform,deepen the understanding of each other’s culture,build the international trade between the trust and acceptance,gradually narrow the cultural distance;Improve transportation infrastructure and related services to reduce international transportation costs as much as possible;Learn innovation ability,mature business model,advanced technical knowledge and management experience from countries with strong economic strength,so as to realize the transformation and upgrading of technologies and industries at the present stage;Pay attention to the institutional differences between countries,understand the institutional preferences of countries,establish a healthy and orderly trading order to improve the institutional level,and maximize the reverse technology spillover of China’s OFDI.