Technology Spillover Effect of the Foreign Direct Investment to Beijing’s Industrial Sector

In the recent years, both academic circles and governmental authorities have been paying high attention to whether the FDI can bring positive spillover effects and how the FDI can be attracted and improved. In this paper,we analyze the spillover effect of FDI to the whole industrial sector and four groups including high-tech industries,medium-high-tech industries,medium-low-tech industries and low-tech industries,which are divided in accordance with the technical level of the industry, by using an endogenous quality-enhanced economic growth framework and panel data of 29 industrials in Beijing from 2005 to 2009. The results indicate that the spillover effects to the domestic enterprises are very different because of the level of technology intensity. There is a positive technology spillover effect, and at the same time the domestic enterprises face the situation of enormous competitive pressure and brain drain problem.