Marketization, FDI and the technological innovation of domestic enterprises—Based on the method of quintile

This paper, based on 2001-2005 provincial panel data of large & medium industrial enterprises in China, gives an empirical analysis to the FDI technology spillover mechanism in the process of market reform in China. The empirical results show that: 1) in the control of the market conditions, we found that FDI doesn´t affect the technological innovation of domestic enterprises; 2) the improvement of domestic market environment can promote the efficiency of FDI technology spillovers, while FDI can also promote the improvement of domestic market environment, but this interaction is the most obvious when it only includes in the 0.5-0.75 quintile of enterprises technological innovation.