Dissertation > Economic > Fiscal, monetary > Finance, banking > China's financial,banking > Exchange rate,foreign financial relations

The Influential Factors on Reverse Technological Spillovers of China’s FDI in the United States

Author LiSha
Tutor ZhangNaiLi
School Shandong University
Course World economy
Keywords foreign direct investment reverse technology spillovers Unites States China influential factors
CLC F832.6
Type Master's thesis
Year 2013
Downloads 177
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China’s foreign direct investment grows rapidly in the past decade. The OFDI flows reached$74.65billion in2011and the average annul growth rate of the past decade is44.6%. Foreign direct investment stock reached$424.78billion in2011, of which OFDI tock in US is$6,685billion. China’s foreign direct investment in the United States grows rapidly in the past decade too. OFDI flows grow from$65million in2003to$1,811billion in2011, an increase of2686.15%. OFDI stock grows from$502million in2003to$6,685billion in2011, an increase of1231.67%. The investment is little proportion of the total OFDI of China and mainly concentrated in the manufacturing sector and mainly the type of natural resources sourcing. Only in recent years technology sourcing FDI has begun but grows very fast. The Unites States is the most developed nation in the world today, holding the world’s leading high-tech. If China can increase the proportion of technology sourcing FDI in the United States, the reverse technology spillovers will increase fast correspondingly. Trough empirical analysis of factors which has impact on reverse technology spillovers of China’s OFDI in the United States, this paper provides theoretical support for China’s foreign direct investment in the United States.The empirical analysis of this paper finally gets the expected results. By using time-series data, this paper puts efforts on analyzing the impact of China’s R&D output, human capital of China and the US, the degree of information technology and patent application on reverse technology spillovers of China’s OFDI in the US. Because of the multicollinearity between those factors, this paper uses partial least squares regression analysis methods to establish model. The regression results found that except human capital of China all the factors have positive effect on reverse technology spillovers. China’s R&D output, the development of China’s information technology and human capital of US have most explanatory power. That’s to say those three factors affect reverse technology spillovers most. So, this paper advice our government to increase R&D output and accelerate the development of information technology. This paper also advice our companies to take a good use of human resource of the United States.

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