FDI's Effect On Technology Spilloverin Henan Province

The development of economic globalization and the rapid flow of international capital in various countries have promoted the activities of foreign direct investment in the international market and have also become one of the important ways of technology diffusion.At the end of 2017,the scale of foreign capital actually used by foreign direct investment in China reached 1.013 billion Yuan,making it a country with a large number of foreign capitals.After many studies,FDI plays an important role in the economic development and growth of a country or region.It is also true for China's economic development and has a great influence on the economic development of Henan Province.Henan Province established the Central Plains Economic Zone in 2011 and proposed the establishment of the Henan Free Trade Zone in 2016.At the same time,various cities in Henan Province formulated various policies to attract foreign investment based on their own economic development,development goals and development plans.The scale of foreign direct investment is also expanding year by year.Does the use of FDI in Henan Province have a technology spillover effect,and to what extent technology spillovers can affect the economic development in Henan Province,and at the same time,it affects the absorptive capacity of FDI technology spillover effects? This of these factors can have a greater impact on the technology spillover effect in Henan Province.The study of these issues can more clearly understand the problems existing in the use of foreign direct investment in Henan Province,and in this way can make recommendations accordingly.With the expansion of the scale of foreign direct investment in Henan Province,it is of great significance to study the role of FDI technology spillovers in the economic development of Henan Province.This paper starts from the absorption capacity and discusses the impact of FDI technology spillover on the economic growth of Henan Province.Most domestic and foreign researches on related issues are conducted at the national level.There are relatively few studies on regional and interprovincial levels.Most domestic studies focus on the eastern coastal regions and economically developed regions.Relatively few studies on the central region are conducted.The article combines theoretical and empirical research to study the importance of FDI on technological spillovers in Henan Province and provides reference for FDI technology spillover effects in other provinces and other regions in the central region.This paper discusses the research background and significance of FDI technology spillovers in Henan Province and the related literature review in the introduction section.Based on the theoretical foundation,overflow mechanism and influencing factors of FDI technology spillover,the status quo of foreign direct investment and FDI technology spillover in Henan Province is analyzed.After borrowing the ideas of Levin & Raut and establishing relevant models,the data from 18 cities in Henan Province from 2011 to 2016 were used to conduct empirical analysis to study the impact of FDI technology spillover on Henan Province.The results of the study indicate that there is a positive FDI spillover effect in FDI aged Henan province and a FDI spillover model based on the perspective of absorptive capacity.Based on the empirical results and the existing problems in the process of FDI technological spillovers in Henan Province,this paper proposes how to improve the FDI technology spillover effect in Henan Province.From the research results of this paper,it can be concluded that in the overall study on the technology spillover effect of FDI in Henan Province,it is found that the change in capital stock has the greatest impact on the effect of FDI technology spillovers,followed by the actual amount of foreign direct investment utilization,labor force level.The spillover effect on FDI technology is relatively small.When studying the factors affecting absorptive capacity,it was found that R&D had the most obvious spillover effect on FDI technology.When it changed by 1%,it caused the greatest change in Y,followed by foreign trade dependence,and human capital ranked third.However,when the level of economic development and patent grants affecting absorption capacity were discussed,it was found that the two had a certain impact on FDI technology spillovers,but they were not in a significant range,that is,they were not significant.