Abstract:

Frontier literatures begin to pay close attention to technological progress bias problem, but generally ignore the mismatch between technological progress direction and factor endowment of developing countries. The role of FDI in the multinational technological progress direction transfer has been rarely noticed. Based on this, according to Acemoglu's technology progress bias model, this paper applies the three-equation method of standardized system to calculate the technological progress bias, using panel data to analyze the impact of American direct investment on China's technological progress bias. It also explores the role of technology gap in the transnational transfer which takes FDI as the carrier, and the difference between FDI's horizontal spillover and vertical spillover. The results show that:(1)The technical progress directions of China and the United States are both capital biases. FDI plays an important role in the multinational technological progress bias transfer, which is the reason why China's manufacturing technology progress direction and its factor endowment structure don't match. (2)The transfer effects of different FDI technology spillovers are heterogeneous. Horizontal spillovers and backward spillovers lead to China's capital technological progress bias. (3)There is a threshold effect on the technology progress bias transfer. The larger the technological gap between China and the United States, the more obvious the technology transfer effect.

Key words: FDI, technology premium, technological progress bias, transnational transfer, manufacturing industry