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Local Innovative Ability, FDI Spillover and Economical Growth
Chen liu Liu zhibiao
(Nanjing University, Nanjing, 210093)
Abstract: The importance of technical growth in economy has been accepted widely, but a lot of study on FDI spillover ignores the local innovative ability in economical growth, FDI spillover is been overrated. This paper analyses the effect of local innovative ability and FDI in economical growth by the panel date of 27 provinces from 1987 to 2003, the conclusion is achieved: local innovative ability has evidently positive effect on growth; By controlling local innovative ability, the FDI has not positive effect, and the combination of FDI and human capital can positively effect growth; local innovative ability has more power in central and westward section than eastward section; the distinction of local innovative ability maybe is a factor to economical imbalance.
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Key word: Local innovative ability, FDI Spillover, Economical growth, panel date
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