Abstract
As an important technology spillover path, FDI plays an increasingly important role in promoting domestic technological progress and optimizing industrial structure. This paper selects the data of GDP, R&D investment and fixed assets investment and employment in China from 2004 to 2011, and adopts a simple and classical linear-model to investigate the relationship between to increase the risk. From the regression results (t-statistics and p-value), there is the effect of reverse technology spillovers in Western China. And China in western region has the problems that economy and science and technology are underdeveloped, so the western region through the increase of foreign direct investment to promote technological upgrading is very necessary. At the same time, we believe that the government of the western region can improve and enhance the technical level, through foreign direct investment, so as to promote local economic development; at the same time, the western region enterprises through overseas investment, especially in technology intensive industry investment to improve the technical level, and mergers and acquisitions may be the effective way to obtain such a spillover effect.
Highlights
From the regression results (t-statistics and p-value), there is the effect of reverse technology spillovers in Western China
China in western region has the problems that economy and science and technology are underdeveloped, so the western region through the increase of foreign direct investment to promote technological upgrading is very necessary
From the regression results (t-statistics and p-value), it can be observed that Outward Foreign Direct Investment (OFDI) is significantly related to the Total Factor Productivity (TFP) and their relationship is positive
Summary
Potterie and Lichtenberg (2001) [4] introduced OFDI as a spillover channel into the “C-H” model to test OFDI technology spillovers. They improved and completed the international R&D technology spillover regression model and used Total Factor Productivity (TFP) to measure technology level of home countries. They took use of 13 countries’ data, including America, Japan and so on, to examine international R&D spillovers of three channels (trade, FDI and OFDI). That suggested OFDI has a similar impact or function in R&D spillovers with trade and FDI
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