FDI Technology Spillover Effect for Zhejiang Province - An Empirical Analysis on Industrial Level

Based on the performance discrepancy of foreign direct investment (FDI) in Zhejiang provincial industries, this paper utilizes industrial data of 2004 to analyze the technology spillover effect of FDI in Zhejiang province. The regressive result shows that, FDI has influenced the economic development of Zhejiang province through its technology spillover effect upon the domestic enterprises. The main channels of Zhejiang provincial technical spillover are technology gap effect, competition effect, industry concentration effect and industry linkage effect. This paper finally delivers strategies and policy advices arise from the analysis towards the regression result