The author empirically tests the technology spillover of foreign direct investment and vertical specialization based on 2003-2007 Chinese industrial enterprises data. It is found thatthe low-end lock position of domestic enterprises in the vertical specializationcontrol the increase in productivity, the horizontal and backward linkages of foreign direct investment have hindered the domestic enter-prises to improve productivity, the forward linkages have promoted the technological progress of domestic enterprises. On the conditionsof considering the interaction of foreign direct investmentand v...
