Study on technology spillover effect of the foreign direct investment to manufacturing industry in Beijing

Since the opening policy started, the foreign direct investment (FDI) in China has developed rapidly. Because of the positive effects to the improvement of social productivity and employment, the different regions pay great attention to the manufacturing industry. Attracting FDI became one of the important policies to improve the technological development in manufacturing industries. Whether FDI can have positive spillover effects has been the interested topic of discussions in the studies. Study on this topic is of great importance for the policy making in order to encourage more FDI and the development of the regional industrial technological level as well. This year and time delay effects of technological spillover effect of FDI on the manufacturing industry in Beijing were analyzed by the fixed effect model on the basis of panel data from the 27 sectors of manufacturing industry in the year 2003-2007 in Beijing. The analyzed result of this empirical study indicates that the FDI has significant spillover effects on the improvement of capital efficiency and productivity of the domestic investment enterprise of manufacturing industry in Beijing.