Abstract
This article has summarized China’s western region’s characteristics of attracting and utilizing foreign capital from 1986 to 2010. It has described the present situation that the distribution of FDI here is unbalanced and the ability of absorbing foreign investment of this region is weak. TFP of the provinces in China’ Western Region has been calculated, and been used to measure technological progress. Through constructing VAB Model, this article has empirically analyzed the relationship between FDI and TFP. The result proves that FDI has some facilitation to the technological progress of China’s Western Region, but is not very significant. In the process of attracting and using foreign investment, the Western Region of China should optimize investment environment, and expand FDI scale; change the concept of attracting investment, and improve the performance of foreign investment; encourage Sino-foreign joint venture, and strengthen technical cooperation.
—Empirical analysis based on VAR model.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Aitken BJ, Harrison A (1999) Do domestic firms benefit from direct foreign investment? Evidence from Venezuela. Am Econ Rev 89:605–618
Blomstrom M, Persson H (1983) Foreign investment and spillover efficiency in an underdeveloped economy: evidence from the Mexican manufacturing industry. World Dev 11:493–501
Borensztein E, De Gregorio J, Lee J-W (1998) How does foreign direct investment affect economic growth? J Int Econ 45:115–135
Cave RE (1974) Multinational firms competition and productivity in host country markets. Econ 41:432–445
National Bureau of Statistics of China. China Statistical Yearbooks Database, China Statistics Press, Beijing, 2011 (Chinese)
Ma L, Zhang K (2008) The classification test research on foreign direct investment to China’s technology spillover. J World Econ 7:78–87 (Chinese)
Wang Y (1998) Multinational corporations’ monopolistic advantages and industrial control to the host country- multinational investment and control of electronic and telecommunications equipment manufacturing industry in China (Chinese). Manage Word 2:114–134
Wei Z, Gu G, He Y (2006). Outward FDI and technological progress-mechanism analysis and empirical research (Chinese). Manage Word 7:58–64
Xu T (2003) FDI absorption and technological progress of China (Chinese). J World Econ 10:22–27
Zhen P (2005) How foreign direct investment directly promote China’s scientific and technological progress—empirical evidence of different regions (Chinese). China Soft Sci 10:66–72
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer-Verlag Berlin Heidelberg
About this paper
Cite this paper
Wu, Hb., Zhou, Yq., Li, H. (2013). Research on the Influence of FDI on Improving Technological Progress of China’s Western Region. In: Qi, E., Shen, J., Dou, R. (eds) The 19th International Conference on Industrial Engineering and Engineering Management. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-38442-4_16
Download citation
DOI: https://doi.org/10.1007/978-3-642-38442-4_16
Published:
Publisher Name: Springer, Berlin, Heidelberg
Print ISBN: 978-3-642-38441-7
Online ISBN: 978-3-642-38442-4
eBook Packages: Business and EconomicsBusiness and Management (R0)