Research On The Technology Spillover Effects Of Direct Investment In Manufacturing From China To Four ASEAN Countries Based On Technological Gap

In recent years,China’s economic growth rate has been continually declining.One of reasons is continually dropping on manufacturing industry activities.The proportion of manufacturing industry in GDP fell from 41% in 2007 to 36% in 2017.Facing the problem of excess production capacity,rising costs,and loss benefits from some domestic manufacturing industries caused,how to seek opportunity for ensuring the survival and sustainable development of the manufacturing industry has been one of the major challenges for Chinese government and enterprises.Facing the problem,the Chinese government has pushed for significant moves in the manufacturing industry base on the initiative of going out,aims to encourage domestic firms to invest abroad.The Chinese government has signed agreements on manufacturing cooperation with some countries and regions,speeds up the process of“going out” in manufacturing.Moreover,since the implementation of the Belt and Road Initiative,cooperation between China and ASEAN countries in manufacturing has been an significant part of the Belt and Road Initiative.Therefore,Chinese manufacturing enterprises need to follow the trend,seize the current opportunities,and actively promote international cooperation.However,with the acceleration of Foreign direct investment and the “ Belt and Road” Initiative by the Chinese government and enterprises,different voice has come from host countries who concern that national interest and investment status in ASEAN countries.Those reasons all force some host countries think China who plays an irresponsible role in this situation.If Chinese government or enterprises wants to achieve long-term development in ASEAN countries along with the “Belt and Road”market,improves the influence of foreign direct investment and enhances the competitive of China,positively responded those issues of public opinion will be the suitable solution to avoid misunderstanding between China and host countries.Therefore,the Chinese government needs to eliminate doubts of ASEAN countries along with the“Belt and Road”and creates a responsible national image on the issues ofChina’s foreign investment.There are two questions waiting for positive feedback from the Chinese government.“whether there is a technological gap in the manufacturing industries of China and ASEAN countries,whether China’s manufacturing investment in the four ASEAN countries has resulted in the positive technology spillover effects”.Based on the above analysis and relevant studies on FDI technology gap and technology spillover effects,this paper will focus on four ASEAN countries(Indonesia,Vietnam,Myanmar,and Cambodia)as a research topic.First of all,the comparative analysis method was utilized to analyze the status of manufacturing technology gaps in China and four ASEAN countries.This research will base on five aspects,namely science and technology,human resources,innovation capability,added value of manufacturing,and information technology development.Factor analysis was utilized to compare empirical analysis of the manufacturing environment between China and the four ASEAN countries(Indonesia,Vietnam,Myanmar,and Cambodia)from the three perspectives of the macro environment,technical resources and infrastructure.The study found that technological gaps do exist in manufacturing between China and the four ASEAN countries.Then,the Malmquist index analysis was conducted on the data of the four ASEAN countries in 2007-2016,and the total factor productivity of four ASEAN countries’ manufacturing industries was measured,and the technical efficiency index and technology progress index were decomposed.Taking the added value of the manufacturing industries in four ASEAN countries from 2007 to 2016 as the output variable,using the stock of China’s manufacturing investment in the four ASEAN countries,the stock of fixed assets in the four ASEAN countries,the number of manufacturing employees in the four ASEAN countries,and the number of middle and high school enrollees in the four ASEAN countries as input variables,a regression equation was established,which empirical researches the Technology Spillover Effect of China’s direct investment in manufacturing industries in four ASEAN Countries.The study found that China’s manufacturing investment in the four ASEAN countries has a positive technology spillover effect;the resulting technology spillover is capital-driven type;Human resources are critical factors that affect technology spillover effects.Finally,according to the results of this study,this article provides suggestions on the government and local enterprises in four ASEAN countries to improve the utilization of FDI and technological absorptive capacity.And this article also provide some suggestions on the Chinese government and manufacturing enterprises to increase the quality of manufacturing investment and reduce the investment risks.