Impact of Industrial Policies on the Regional Reverse Technology Spillover from OFDI

Xiangdong Zhou

doi:10.54691/bcpssh.v16i.468

Authors

Xiangdong Zhou

DOI:

https://doi.org/10.54691/bcpssh.v16i.468

Keywords:

Industrial Policy; OFDI; Reverse Technology Spillovers; Inter-industry Resource Allocation.

Abstract

By sorting out the important industries mentioned in China's “11th Five-Year Plan” and “12th Five-Year Plan” and utilizing inter-provincial OFDI panel data from 2006-2015, this paper examines whether industrial policies effectively promote reverse technology spillovers from OFDI channel through a linear regression using the fixed effects model. In addition, this paper also examines the heterogeneity of industrial policy implementation by policy sources and regions, proving the robustness of the results. The empirical results show that industrial preferential policies have significantly promoted local OFDI reverse technology spillover, and the effect differed significantly between regions. The rationalisation of industrial structure, the regional economic growth and regional openness all have a positive impact on OFDI reverse technology spillover. Finally, in order to contribute to China's high-quality economic development, this paper puts forward some suggestions on how to implement industrial policies more effectively.

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