ree newsletters from SCIRP.
Kogut, B. and Chang, S. (1991) Technological Capabilities and Japanese Foreign Direct Investment in the United States. The Review of Economics and Statistics, 73, 401-413.
ABSTRACT: As an important technology spillover path, FDI plays an increasingly important role in promoting domestic technological progress and optimizing industrial structure. This paper selects the data of GDP, R&D investment and fixed assets investment and employment in China from 2004 to 2011, and adopts a simple and classical linear-model to investigate the relationship between to increase the risk. From the regression results (t-statistics and p-value), there is the effect of reverse technology spillovers in Western China. And China in western region has the problems that economy and science and technology are underdeveloped, so the western region through the increase of foreign direct investment to promote technological upgrading is very necessary. At the same time, we believe that the government of the western region can improve and enhance the technical level, through foreign direct investment, so as to promote local economic development; at the same time, the western region enterprises through overseas investment, especially in technology intensive industry investment to improve the technical level, and mergers and acquisitions may be the effective way to obtain such a spillover effect.