Spillover effect exerted by FDI on manufacturing industry and its effect to environment

After China joint WTO, taking the advantage of FDI has become a major source for the Beijing´s manufacturing industry to absorb outside technology and maintain long-standing growth. The paper empirically study the spillover effect exerted by FDI on Beijing´s manufacturing industry by using the data of Beijing´s manufacturing industry from 2001 to 2010 and the impact of environmental regulation on industrial technological progress and the effect of environmental regulation on the effect of FDI on industrial technological progress. The paper found that if the technological gap between the foreign company and domestic company was relative larger, the spillover effect was larger, and the spillover effect was comparatively stronger. The paper also found that FDI horizontal spillover has no promotion effects on industrial technological progress; FDI forward spillover had uneven promotion effects on industrial technological progress and the enhancing of environmental regulation intensity also had significant promotion effects on industrial technological progress.