Horizontal and Vertical Technology Spillover Effects from FDI:An Empirical Study Based on the Panel Data of Chinese Industrial Sectors

Although the volume of FDI has been greatly enhanced,there still exist some problems and irrational status quo in China's industrial structure.Whether has FDI produced significant vertical and horizontal correlation effects to relevant domestic enterprises? Which effect is more obvious? In this paper,the forward and backward technology spillover effects are tested and analyzed by the panel data including 35 industrial sectors during the years of 2005~2008.The empirical results show that the horizontal spillover effects from FDI are negative while the spillover effects from intra-industry are not significant.This conclusion will shed light on the guidance and the utilization of foreign capital,and the policy formulation of related industries.