The impact of OFDI reverse technology spillover on China's technological progress: Analysis of provincial panel data

Abstract

In recent years, China's foreign direct investment (OFDI) has grown rapidly. While promoting economic development of a host country, it also has a certain impact on technological progress of a home country through the reverse technology spillover effect. However, the source of China's OFDI is not unevenly distributed, and OFDI of the Eastern coastal economically developed provinces and cities has the highest proportion. At the same time, due to large differences in economic development levels and technical levels of various provinces and cities, the absorption effect of OFDI reverse technology spillovers must be different. This paper takes the patent grant amount as a technical indicator and uses panel data on various provinces and cities in China to empirically test the reverse spillover effect of OFDI on China's technological progress and regional differences in it. Overall, there is a long-term stable equilibrium relationship observed between China's OFDI and domestic technological progress, but the correlation coefficient is not high. In terms of regions, the largest value is observed on the East, the second largest-on the West, and the smallest-in the Central region. The proportion of China's OFDI participating in foreign production and technology research and development is still relatively low, so the coefficient of influence on technological progress is not high. The government should actively guide and promote Chinese enterprises to increase foreign investment in production, research and development, and thus increase the contribution of OFDI to technological progress.

Chinese high-tech foreign direct investments in the EU – trends and policy responses

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Newari Community’s Attitude to Promote Cultural Tourism Development: Evidence from Kathmandu Valley, Nepal

“…Cultural tourism development is rapidly growing phenomenon which relates to countries or region's culture which highlights uniqueness and diversity which distinguishes it from other culture. These regional differences also affect foreign direct investment inflows of a specific region (Shuyan & Fabus, 2019). Several theories including Hofstede's Cultural Dimensions Theory (Xiaomei, 2016), Community Perception Theory (O'Brien & Wilson, 2011), Push and Pull Model of tourism theory (Antara & Prameswari, 2018), The Sociological Theories of Deviance (Wells, 1978), and Attribution theory (Orth, 2012) are discussed which is concern with the Interactions between the local community and culturally motivated visitors help to the growth of cultural tourism as well as the preservation and enhancement of the richness of local cultural resources for future generations.…”

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“…However, the motives of OFDI from developing economies in general, and particularly from China, are found to be inconsistent with these traditional views because EMNEs do not possess ownership advantages in technology and management style (Driffield and Love, 2003). It is generally argued that EMNEs use international expansion as a springboard to leverage strategic assets and advanced technology (Ali et al , 2018; Buckley et al , 2014; Knoerich, 2019; Luo and Tung, 2007; Mathews, 2006; Shuyan and Fabus, 2019). As noted by Mathews (2017) that emerging economies' OFDI presents a strategy of the dragon multinationals to catch-up with advanced economies through acquiring technology and accessing distribution networks.…”

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