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A Study of the FDI Technology Spillover Effect on China’s Electronic Information Industry

Author: YangJie
Tutor: GongXiaoHua
School: Xiamen University
Course: International Trade
Keywords: FDI Technology Spillover Electronic Information Industry
CLC: F426.6
Type: Master's thesis
Year: 2009
Downloads: 282
Quote: 2
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Abstract


In 2006,China enjoyed US$69.47 billion of FDI,ranking No.5 in the world. And it’s voted out by the "World Investment Report(2007)" published by the UNCTAD,that,the most attractive country of FDI is China.A large amount of FDI is enjoyed by electronic information industry in China.Apart from that,as national economy prop profession,electronic information industry has some characteristics, such as,tech-intensive and capital-intensive,fast innovation;high fixed costs,low variable costs;high R&D cost,low manufacturing cost.It makes electronic information industry suitable for the study of FDI spillover effect.So the paper selected the terms of electronic information industry to study FDI spillover effect.The paper studies FDI spillover effect from two perspectives,namely,whole electronic information industry and domestic companies.Form the perspective of whole industry,the paper selects three respects—key economic indicators,export,and autonomous innovation ability.The respect of export includes two smaller respects—quantity of export and export competitiveness.The study of autonomous innovation ability relies on a series of innovation indicators.From the perspective of domestic companies,at first,the paper introduces the state of them.Secondly, combined with analysis mentioned above,the paper judges whether FDI has positive technology spillover effect on domestic electronic companies.Thirdly,it discusses the science and technology development of domestic electronic information industry, which is brought by FDI technology spillovers,using regression analysis.The basic conclusion of the paper is that,FDI doesn’t have positive technology spillover effect on domestic electronic companies,as we expected.Finally,the paper makes a conclusion,and according to the research result,proposes the corresponding policy suggestions on how to better utilize and expand FDI technology spillover to domestic electronic information industry.

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