A Study On FDI Linkage Spillover To The Manufacturing Industry Of Chongqing

One of the most important ways of the economic communication for all world countries,foreign direct investment gets much greater attention for its spillover for the host countries by scholars.Recently,academe's generally opinion of spillover generated by FDI is that spillover is centrally showed on demonstration effect,competition effect,training effect and connecting effect.While the results of the question that whether spillover appears in actual production by empirical analysis are different.Compared with other regions in China,the middle and west have been in a lower speed for absorbing foreign capital due to the restrict to some reasons like locations,bases of economy,the level of opening up and etc.So,many early references show that there exists obvious spillover,while the middle and west part are not.With the deepening of opening up,the middle and west pay much attention to introduce foreign capital and construct real economy.FDI based on the manufacturing contributed more to the region economy.Based on this,this paper selects FDI of manufacturing in Chongqing municipality which is a typical industry city as subject investigated.The empirical analysis by constructing an econometric model with the panel data from 2010 to 2016 is used to study the horizontal and vertical linkage spillover of the manufacturing FDI in Chongqing.The results of the empirical analysis show that the competition and demonstration effect in horizontal linkage spillover is obvious for current period but obvious positive for lagging one phase.The personnel turnover effect is obvious negative for lagging one phase.The forward linkage spillover in vertical linkage spillover is obvious positive and the backward linkage spillover is not obvious.Theresults of the regression of classifying three kinds of manufacturing show that the competition and demonstration effect of high-tech manufacture sectors are positive only when widen the significance level.The labor-intensive manufacture sectors own the negative competition and demonstration effect for current period,positive forward linkage spillover and negative personnel turnover effect for lagging one period.Eliminating the export part of FDI companies,the regression results show that the spillover is affected by the export of FDI companies and this affection is very obvious in high-tech manufacturing.All the regression results show that the interactivity between FDI and local companies in Chongqing manufacture industry still remains to be promoted.Also,there exists a further optimizing in industrial structure.Governments at all levels can spare more efforts on the entering policies and business environments,co-operations among governments,industries and schools,adjustment of industry in-structure.