Measuring reverse technology transfer effect of OFDI from OPEC to China: Application of revised BK model

Abstract

Based on the panel data of Chinese outward foreign direct investment(OFDI) to 13 Organization of Petroleum Exporting Countries(OPEC) from 2003 to 2010, this paper analyzes the effect of OFDI reverse technology spillovers(RTS) from the ASEAN on China's economic growth, and finds:(1)whether from short-term or long-term perspective, the role of RTS on promoting China's economic growth is proved, but the effect size is less than FDI.(2) OFDI and domestic capital investment have a positive feedback relationship, namely with the increase of OFDI, the gains can be turned to increase domestic investment and domestic capital increasing will also can promote OFDI. (3)In the long run, the effect gap between OFDI and FDI is narrowing, especially after the economic crisis this trend is more obvious. (4) Developed countries in OPEC do not have a greater impact on China's economy than developing countries.