Analysis on Phased Technology Spillovers of FDI and Chinese Technology Progress Based on the Empirical Analysis of Panel Data

Technology spillovers of Foreign Direct Investment (FDI) had a great impact on technology progress in host countries, and this will affect the sustainability of economic growth in these countries. Based on the 29 provinces and municipalities of the panel data from 1988 to 2006, this paper tries to divide China's FDI position into three time periods for scientific and rational inspection. This is done through the establishment of the model of technological progress and FDI of technology spillover effects, and through analysis of China's FDI in technology overflow at different times and in different regions, this enable decision making according to local conditions to establish the correct formulation of foreign investment with scientific and effective.