The Mechanism of Intra-Industry Technology Spillover Effects of Up-Gradient ODI and Down-Gradient ODI in China

摘要

With the fast development of the global division of labour, intra-industry technology spill over has become a significant manifestation of both Foreign Direct Investment (FDI) and its impact on the domestic industrial structure, as well as the key to industrial value chain upgrading. Meanwhile, China's outbound foreign direct investment (ODI) has developed rapidly since the reform and opening up, with a large number of both up-gradient ODI in developing countries and down-gradient ODI in developed countries. Therefore, it is essential to figure out the relation between ODI and industrial technology change. This paper intends to theoretically clarify the adjustment function of ODI to intra-industry technology change and to construct the mechanism of this process. It provides a theoretical reference for the empirical analysis of the role of direct investment in intra-industry upgrading.