The Influence Of RCEP Countries’ Economic Freedom On The Spillover Effect Of OFDI Reverse Technology In China

The scale of China’s OFDI continues to grow and has become an important part of the world’s transnational investment.In recent years,China’s economy has been developing to a high quality stage,and technological innovation has attracted much attention to promote economic development.With the signing of the Regional Comprehensive Economic Partnership agreement(RCEP),Investment and trade and economic exchanges between China and other RCEP countries have become increasingly close,and China has become a major destination for China’s foreign investment.To a certain extent,it is conducive to the stability of China’s foreign trade and foreign investment and promote high-quality economic development.Therefore,it is of certain significance to study the reverse technology spillover effect of OFDI.RCEP countries economic development level,technology level and economic environment there is a big difference,in the background at first,this paper summarized the related literature OFDI reverse technology overflow effect,combed the foreign investment related theory and the technology spillover effect of foreign investment mechanism,and then puts forward the economic environment of OFDI reverse technology overflow effect model,The research and development capital stock obtained through OFDI was taken as the explained variable,and 8 indicators of economic freedom were replaced into the model for testing.The results show that GDP per capita and trade volume are positively correlated with reverse technology spillover,while the level of opening up is negatively correlated with the level of technology.In the economic environment index,the coefficients of monetary freedom and financial freedom reflected by government control are both positive but not significant,indicating that government regulation on price and finance has little response to reverse technology spillover.As for the degree of freedom of business and labor reflecting the cost of enterprises,there is a negative correlation between the degree of freedom of business and the degree of freedom of labor,indicating that the lower the entry cost of enterprises is,the more favorable it is to obtain technology spillover,while the degree of freedom of labor is negative but not significant.There is a significant positive correlation between the degree of freedom of trade in economic and trade relations,while the degree of freedom of investment coefficient is positive but not significant,indicating that the restrictions of enterprises in the host country on foreign investment in industries have little impact on China’s investment.The possible reason is that China’s foreign investment has been state-owned enterprises for a long time,and it has low requirements on investment environment.And government spending and property coefficient is negative but the former was not significant,the reason may ease spending is too high for the government as a result of financial imbalances,tends to increase taxes,increased business costs,property rights have a negative correlation between construction and insufficient regulation on the one hand,shows that China’s property law,on the other hand also shows that technology absorption and innovation ability is insufficient.The economic freedom in general technology of OFDI reverse effect coefficient is negative,the reason may be that the economic freedom countries with higher investment overall level is not high,and more focused on is given priority to with rental services of the third industry,a relatively low proportion of manufacturing investment,to reverse technology overflow is not obvious,and the lower investment in developing countries tend to focus on manufacturing,Industrial transfer can promote the optimal allocation of domestic resources,accelerate the adjustment and upgrading of industrial structure,and promote the gradual transformation of industry from low value-added to high value-added,so as to improve the technological level,create a better development environment for information industry and high-tech industry,and drive technological innovation and development.Based on the empirical results,it can be concluded that China’s investment in RCEP countries is mainly based on the transfer of marginal industries to drive the development of technology.Therefore,China should enhance the technological level and absorptive capacity of enterprises,strengthen the guidance and policy support of enterprises investing abroad,and enhance the confidence of enterprises to cope with challenges on the basis of industrial transfer and diffusion.