59 / 2015-06-19 13:31:53

Comparative Analysis of FDI Technical Spillover Effects of Automobile Manufacturing and Accessory Industry in China

Abstract: As automobile industry is an industry that utilizes more foreign investment in China, the amount of FDI technical spillover has attracted much attention. This study made an empirical comparison of technical spillover effect of automobile manufacturing industry and accessory industry using the data from 1998 to 2012 in China. It turned out that the FDI spillover effect of automobile manufacturing industry mainly came from the FDI technical spillover within the industry, when it comes to the accessory industry, the FDI spillover effect mainly came from the FDI technical spillover within and among the industries, and the inter-industry technical spillover came from the FDI of automobile manufacturing industry is larger than the intra-industry spillover came from the accessory industry itself. The author analyzed the reasons in detail and made suggestions for automobile industry to in order to make better use of FDI and gain more technical spillover.