Impact of China�s FDI on Technological Progress and Economic Growth -- Based on Malmquist Productivity Growth Index Analysis

Lan Xu

Volume : V, Issue : III, March - 2016

Impact of China�s FDI on Technological Progress and Economic Growth -- Based on Malmquist Productivity Growth Index Analysis

Lan Xu

Abstract :

This paper analyzes China�s economic productivity growth and technological progress in recent 10 years for 30 provinces and directly affiliated cities using the Malmquist productivity growth index principle, and it also provides empirical analysis according to the total factor productivity accounting method, on the effect of economic growth and technological spillover. It is found that China has attracted a significant amount of high technologies through foreign direct investment, which plays a great role in promoting the development of China�s economy. On the other side, a large-scale of direct investment overseas of Chinese enterprises is still in its infancy belonging to the second phase according to Dunning�s multinational investment theory and also on this paper�s empirical analysis. Therefore, the reverse technological spillover of overseas FDI to China is not obvious currently, or even to be negative.