The Game Analysis of Technology-Sourcing FDI Based on Reverse Spillover Effects Motivation

Technology-sourcing foreign direct investment (TSFDI) relies on the reverse spillover effects and aims at getting advantageous technology. To understand logically the relationship between TSFDI and reverse spillover effects, the Cournot two-stage complete-information game model has be amended by adding two factors of spillover-amount and absorption. The conclusion shows that TSFDI is the foundation of the reverse spillover effect and it happens only under the conditions of having certain technology gap and absorption ability.