Empirical Research on Technology Spillover Effect of International Trade and FDI:Analysis of Perspective Based on Absorption Capacity and Threshold Effects

Collecting data of international trade,FDI and innovation related,using dynamic panel econometric model beyond the knowledge production function.The paper examines international trade and FDI technology spillover effect about 30 provincial regions in China's during 1998-2009.Results show that: international trade technology spillover effect is not significantly negative in short-term;significantly positive in medium-term;significantly negative in the long term.FDI technology spillover effect is significantly positive in the short term,not significant or significantly negative in medium term,no significant negative or no significant positive in long-term.Based on this,the paper analyzes the cause from the perspective of absorptive capacity and threshold effects,and puts forward effective policy recommendations to absorb and use international technology spillovers to enhance regional innovation capability.