The Impact of Technology Transfer of FDI on the Quality of Domestic Economic Growth——A Test Based on China’s Regional Panel Data

With the panel data of 29 districts from 1999 to 2007 in China,the paper analyzed impacts of different spillover effect of FDI on the quality of domestic economic growth and factors.The results showed that technology transfer and diffusion of FDI has a positive effect the quality of local economic growth,but the spillover effect which is reflected by the level of FDI participation mainly has a negative role on it.Only in the sub-sample of high levels of FDI agglomeration,the level of FDI participation has a positive effect on it when the spillover effect that was reflected by the depth of foreign participation approach to the effect of technology transfer and diffusion of FDI.The research also found that the technological gap,agglomeration level of FDI and the gap of ratio of value added are important factors affecting effects of technology transfer and diffusion of FDI on the quality of economic growth.