Proceedings of the 2nd International Conference on Science and Social Research (ICSSR 2013)

The Effect of OFDI Reverse Technology Spillovers from ASEAN on China's Economic Growth

Authors
Xianfeng Chen, Yan Li
Corresponding author
Chen
Keywords
outward foreign direct investment (OFDI); reverse technology spillovers (RTS); Association of Southeast Asian Nations (ASEAN)
Abstract
Based on the panel data of Chinese outward foreign direct investment(OFDI) to 26 Association of Southeast Asian Nations(ASEAN)countries from 2003 to 2010,Using Integration, error correction model, impulse response function and the GLS method,this paper analyzes the effect of OFDI reverse technology spillovers(RTS) from the ASEAN on China's economic growth,and finds:(1)whether from short-term or long-term perspective,the role of RTS on promoting China's economic growth is proved,but the effect size is less than FDI;(2)The FDI from ASEAN can promote China's OFDI to ASEAN countries, however the OFDI cannot significantly promote FDI to increase;(3)In the long run, the effect gap between OFDI and FDI is narrowing, especiallyafter the economic crisis this trend is more obvious;(4) Developed countries have a greater impact on China's economy than developing countries.
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