An Explanation of the Technical Spillover Effect of FDI in China——Based on the Quality Evaluation of FDI

Based on the theory that the quality of FDI,which shows the contents,is a prerequisite for FDI to create spillover effect,this paper evaluates the quality of China's absorption of FDI from 1998 to 2013 and compares it with the global average level to explain the condition of FDI spillover effect in China. Through the analysis,the authors find out that the quality of FDI absorbed by China is generally low with a decreasing trend. Most of the FDI absorbed by China has no gap with China. Meanwhile,some of the FDI have too much gap due to the technical spillover thresholdin China. As a result,few FDI can be found inside China'stechnical spillover thresholdwith certain gap. In this case,the overall quality of FDI in China leads to the insignificant FDI spillover effect.