Research on OFDI Reverse Spillover Effect of "The Belt and Road" Countries

This paper selects the panel data of China's direct investment in 24 countries and regions along "the Belt and Road" from 2007 to 2017, and uses the method of least squares regression to study the reverse spillover of China's direct investment. To determine the size of the reverse overflow and the factors that affect the reverse overflow: First, this paper draws on the LP model to determine the impact of reverse spillovers on China's total factor productivity through direct investment in countries along "the Belt and Road", and thus getting the significance of reverse spillovers. Second, adding human capital, R&D intensity, infrastructure level, economic openness and the interaction term of reverse spillover level to determine the factors that influence the size of the reverse spillover. This study finds that: (1) Direct investment in countries along "the Belt and Road" can significantly increase China's total factor productivity, that is, it can generate reverse technology spillovers. (2) Human capital level, R&D intensity, infrastructure level and economic openness can promote China's technical progress, but the impact of R&D intensity is relatively small.