The Impact Of OFDI Reverse Technology Spillover On The Upgrading Of Industrial Structure

With the rapid development of economic globalization,more and more countries begin to realize the importance of outward foreign direct investment(OFDI).China has also adopted a series of policies to promote the development of OFDI.At the same time,OFDI has a reverse spillover effect and can promote the upgrading of the industrial structure of the home country.This phenomenon has attracted scholars’ attention,but its mechanism path remains to be clarified.Therefore,based on the perspective of home country institutional environment,this paper analyzes the impact mechanism of OFDI reverse technology spillover on industrial structure upgrading and makes an empirical test.Firstly,on the basis of combing the existing literature at home and abroad,this paper analyzes the mechanism and path from OFDI reverse technology spillover to industrial structure upgrading: firstly,obtain the advanced technology of the host country through the transfer of R&D achievements,absorption of R&D elements,allocation of R&D expenses and feedback of operating income to realize technological progress;Then promote the upgrading of industrial structure through industrial correlation,competition and transfer mechanism.Among them,the home country institutional environment plays a vital role.A perfect home country institutional environment can provide power,factor support and guarantee for enterprises to obtain reverse technology spillovers.Secondly,using the provincial panel data from 2003 to 2018,using the marketization index and its five sub indexes,including the relationship between the government and the market,the development environment of non-state-owned economy,the development environment of product market,the development environment of factor market and the legal environment to represent the home country’s institutional environment,study its specific effectiveness,and test it in the East,central and western regions.Finally,in order to explore the specific causes of regional differences,the threshold regression model is introduced,and the home country institutional environment is taken as the threshold variable to verify whether it has the threshold effect.The empirical results show that: First,OFDI reverse technology spillover can promote the upgrading of industrial structure.OFDI can obtain reverse technology spillover and promote the upgrading of industrial structure.IFDI technology spillover,financial development level,R&D intensity and human capital also play a positive role in promoting the upgrading of industrial structure.Second,the impact of reverse technological spillover on the home country’s industrial structure can be strengthened.Among the institutional environment indicators,except the factor market environment indicators are not significant,the other indicators are highly positively correlated.There are great differences in the institutional environment between the East and the central and western regions,and the eastern region is significantly better than the central and western regions.Third,there is a first-order threshold effect in the market-oriented index,the relationship between the government and the market,the development environment of non-state-owned economy and the rule of law environment,all of which are gradually strengthened.Finally,based on the results of theoretical research and empirical analysis,this paper puts forward the following policy suggestions: First,the government should encourage enterprises to "go out" and carry out OFDI to obtain reverse technology spillover.The second is to improve the institutional environment according to local conditions and in combination with the actual local situation.Focus on improving the product market environment in the eastern region,reduce government intervention in the central region,comprehensively improve the comprehensive institutional environment in the western region,and help it cross the institutional threshold.