Outward foreign direct investment, R&D spillover and technical progress in China

Abstract

Abstract: In this paper, we construct models from angles of investment country's independent innovation capability and total factor productivity to test reverse technical spillover and the influence that the absorption capacity have on the reverse technical spillover. The main conclusions are as follows. In the short term, outward foreign direct investment has promoted domestic innovation capability. China has surpassed the domestic R&D absorption and human capital absorption threshold in 1992 and 1990 respectively. In the long term, under the absorption of domestic R&D and human capital, outward foreign direct investment has also promoted the total factor productivity. China has surpassed the domestic R&D absorption threshold in 1990, and has no threshold in human capital. Overall, outward foreign direct investment has promoted China's technical progress by raising domestic innovation capacity and total factor productivity.

Key words: outward foreign direct investment, international R&D spillover, technical progress, absorptive capacity

CLC Number:

F830.59

Lu Wanbo, Chang Yongrui, Wang Yetao. Outward foreign direct investment, R&D spillover and technical progress in China[J]. Science Research Management, 2015, 36(3): 38-48.

References

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