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FDI will cause technological advance in host industry by its spillover effects.The approaches of technology spillover include horizontal spillover and vertical spillover.Most scholars do research on the two kinds of spillover effects separately. Therefore,by using panel data and Malquist index of China’s manufactuting industry, this paper analyses the two spillover effects of FDI on China’s manufacturing industry in one frame in order to test scientifically the spillover effects of FDI on China’s manufacturing industry.
FDI will cause technological advance in host industry by its spillover effects. The approaches of technology spillover include horizontal spillover and vertical spillover. Most scholars do research on the two kinds of spillover effects separately. Therefore, by using panel data and Malquist index of China’s manufactuting industry, this paper analyzes the two spillover effects of FDI on China’s manufacturing industry in one frame in order to test scientifically the spillover effects of FDI on China’s manufacturing industry.