FDI technology spillover effects under reform and opening-up: Evidence from China

Most empirical studies in China and abroad concluded that: Foreign direct investment had positive influence on the technical progress of Chinese local enterprises. However, the conclusion was drew without considering the influence of changes in institution on Chinese total factor productivity. This paper puts the variable which representing changes in institution into econometric model, it´s found that FDI generates negative technology spillover effects in China. Further deepening the reform is favorable to generate positive technology spillover effects.