Abstract: The paper takes the sample of inter-provincial panel data between 1998 and 2012 with capital, labor and carbon dioxide as inputs and makes empirical analysis by means of the one-stage SFA and Panel Threshold methods to study the spillovers of FDI from different source countries on technical efficiency of China’s enterprises. The results show those: (1) the spillovers of FDI from South Korea and Singapore and FDI from other countries exceed those of FDI from America, Britain, France, Germany, Italy and Japan (G7) and FDI from Hong Kong, Macao and Taiwan, and except of FDI from Hong Kong, Macao and Taiwan, the spillovers of other types of FDI in Western China are less than those in Eastern China; (2) the better degrees of marketization and human capital can improve the technical efficiency of China’s enterprises directly and indirectly; (3) in order to observably improve the technical efficiency of China’s enterprises indirectly, FDI from G7 needs the biggest threshold levels in degrees of marketization and human capital, while FDI from South Korea can maximize the spillovers with the smallest threshold levels. Such results mean that we should have scalar attraction of FDI by avoiding low-level FDI and arbitrary selection of high-level FDI according the actual situation of China’s provinces to ensure smooth and leapfrog stimulation for China’s enterprises. What’s more, we should pay more attention to improve the degrees of marketization and human capital aiming to improve technical efficiency directly and indirectly.

Key words: FDI, technical efficiency spillovers, national attribute, one-stage SFA, threshold characteristics