FDI Spillovers and Economic Growth in China

China's inward foreign direct investment (FDI) has grown at a dramatic speed and has become an increasingly important push to the economic growth across China after China's openness. However, whether 'Market for Technology' Policy effectively promoted China's technological advancement turns out to be a main theme of FDI spillovers. An analytical framework of gross production function model is developed, based on the hypothesis of technological gap between foreign and domestic sectors using panel data of 30 provinces in China from 1991 to 2007. Affirmative conclusion of the FDI spillovers is made by empirical tests in both aggregate and minor sample groups-coastal and inland to gain theoretical basis and more realistic measures of attracting FDI.