The Impact of FDI Technology Spillovers on Technological Progress in China’s Computer, Communication, and Other Electronic Equipment Manufacturing Industry: A Study Based on a Panel Smooth Transition Regression Model
Keywords:
FDI horizontal spillovers, Panel smooth transition regression model, Computer, communication, and other electronic equipment manufacturing industry, Technological progress, Absorptive capacityAbstract
With the development of economic globalization, foreign direct investment (FDI) has become a key area of focus for governments and academic research as an important means of strengthening international economic ties and promoting domestic economic development. The impact of technology spillover effects from direct investment on technological progress in host countries has also attracted widespread attention from scholars both domestically and internationally. Based on panel data from the computer, communication, and other electronic equipment manufacturing industry in 25 provinces in China from 2001 to 2021, this study employs a panel smooth transition regression model using MATLAB to investigate the impact of FDI horizontal spillover effects on technological progress in the industry, with R&D funding and R&D personnel input as transition variables. The findings of the study are as follows: (1) There is a nonlinear relationship between FDI horizontal technology spillovers and technological progress in the industry, and there are significant regional differences in the linear relationship. (2) From a national perspective, FDI horizontal technology spillovers promote technological progress in the industry, but when R&D personnel input exceeds a threshold value, FDI horizontal technology spillovers hinder technological progress in the industry. (3) At the regional level, FDI horizontal technology spillovers in the eastern region promote technological progress in the industry. However, when both R&D funding and R&D personnel input exceed their respective threshold values, FDI horizontal technology spillovers hinder technological progress in the industry. In the central and western regions, there is a linear relationship between FDI horizontal technology spillovers and technological progress in the industry. (4) The increase in FDI horizontal technology spillovers in the eastern region leads to a shift in the pathway of technological progress in the industry, from relying on technology spillovers to independent research and development.
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