Inter-industry Spillover:An Important Channel for FDI Spillover Effects

FDI spillover effects are now becoming a hot research topic in the academe.That FDI has positive spillover effects has become the theoretical basis for many policy makers to formulate policies to introduce investment.However,all kinds of results are found in the last 30 years’studies.Many empirical studies conducted in recent years prove that FDI spillover effects are not obvious,even negative.Among the various causes,the important one is that only intra-industry spillover effects have been taken into consideration,while inter-industry spillover effects were neglected.Based on the panel data analysis of 13777 enterprise samples from 31 branches in Shanghai’s manufacturing sector,this paper confirms that the inter-industry spillover effects is an important channel for FDI spillover effects,the inter-industry spillover effects can be affected by such factors as the source of foreign investment,export-orientation or domestic market orientation,ownership types,technologic gap,etc.