Impact of Spillover Effects of FDI on Food Industry in China

The paper is to explore positively spillover effects of FDI in Chinese food industry, based on the year data of food industry. Firstly, it examines the overall spillover effects of FDI. The results indicate that there is slight evidence of spillover effects for aggregate data. Then, as for the spillover channels, it demonstrates horizontal linkage, forward linkage and backward linkage effects using the panel data. Thirdly, it empirically analyzes spillover effects of FDI on four sub-industries. Finally, the findings show that there is a spillover effects in using FDI in food industry, but only exist in forward linkage and food processing industry and a crowding-out effect in backward linkage.