The Domestic Effect of Technological Progress on China's OFDI: Theoretical Analysis and Empirical Study

摘要

By the means of foreign direct investment abroad, establishing new R&D institutions or joint ventures with the advanced enterprises in the developed countries, the enterprises from the developing countries are able to get a positive effect of the reverse technology spillovers from the host country to the home country. The reverse technology spillovers play through three levels followed by firm, industry and the country. Employing data of China outward foreign direct investment from 1987 to 2008, it resorts to co-integration analysis to explore the balance among outward foreign direct investment and patent grant. It is found that outward foreign direct investment has positive influence over domestic technological progress but the effect is not significant at present time.