Research On The Impact Of Financial Development On The Technology Spillover Effect Of FDI In My Country's Manufacturing Industry

With the rapid development of economic globalization,FDI provides a very important driving force for the rapid economic growth of all countries.At present,China's economic development is rapid,and domestic funds continue to increase at a steady rate.In recent years,the specific effect of using foreign direct investment is not only the initial capital accumulation effect,but also gradually changing to technology spillover effect.In fact,the technology spillover effect of FDI has a very important impact on the economic growth of the host country,which is also limited by many factors.The level of financial development is one of the key factors,and the generation and absorption capacity of technology spillovers are affected by it.Therefore,China should make full use of the spillover effect of FDI in order to contribute to the development of manufacturing industry and technological progress.Based on panel data from 29 provinces(municipalities)from 2004 to 2018,this paper uses the total factor productivity of the manufacturing industry as an indicator to measure the technology spillover effect of the manufacturing industry,while decomposing the total factor productivity into two parts: technical efficiency and technological progress.This article is based on the individual fixed-effect model.First,it empirically analyzes the impact of financial development on the FDI technology spillover effect of China's manufacturing industry at the national level.Second,considering the differences in the level of financial development in China's various regions,they have different effects on the East,West,and West.Relevant empirical studies were carried out in each region.The results show that,at the national level,financial development has a positive impact on China's manufacturing total factor productivity,technological progress,and technological efficiency,and has proved that a good financial system can expand foreign direct investment and promote the spillover effect of manufacturing total factor productivity.During the discussion by region,it was found that due to the relatively high degree of financial development in the eastern region,it has a positive impact on the technological spillover effect of manufacturing FDI;while in the central and western regions where the level of financial development is relatively backward,the level of financial development in the region has a significant impact on manufacturing.The technological spillover effect of the industry FDI is relatively small or even negative compared to the eastern region.This shows that the level of financial development has promoted the technology spillover effects of FDI in China's manufacturing industry as a whole,but from the empirical results in the eastern,central,and western regions,there are regional differences in financial development's technology spillover effects on China's manufacturing industry.