Analysis on Foreign Direct Investment Spillovers through Backward Linkages

This paper builds up a model to analyze FDI spillover effect through backward linkages, and with empirical analysis which uses the panel data of China' s industries,it draws conclusions that the spillovers through backward linkages is positive and significant,even stronger than intra -industry horizontal spillovers;FDI' s backward linkage spillovers is not vulnerable to the impact of the technology gap;Market-seeking FDI' s backward linkage spillovers is stronger than Export -oriented FDI;and the non-export sector can obtain more benefits from FDI' s backward linkage spillovers than export sector;the backward linkages is an important approach of FDI' s spillover effects.