The Spillover Effect of Foreign Direct Investment: International Experience and Enlightenment1. Introduction Since the 1990s, as the process of globalization and developing countries to accelerate the opening up of foreign direct investment in the spillover effect more and more by the general concern of all countries in the world. China and the Asian financial crisis has become a global attracting foreign direct investment than any other country, how best to encourage foreign direct investment in our country have a spillover effect, while foreign direct investment by reducing the negative impact, but also has been one of our government and the reality faced by the enterprises in question. international level in this areas most famous one of the researchers, as he and his colleagues in 1996, Professor Ari Kokko spillover effect on the description of the foreign direct investment that is spillover effect, as the international business enter or participate in the host country received by the local enterprises improve labor productivity. In fact, the international community on the spillover effects of foreign direct investment In the 1960s, the study has been started, it is precisely because the nature of the problem, and involved in an open economic environment in the countrys development strategy for decades to research in the field more enthusiastic, and really made a lot of progress. Foreign direct investment spillover effect on the core issue of spillover effect is the mechanism, that is, when foreign direct investment after entry into the host country, through the micro-mechanism and how the process of the host countrys labor productivity of local enterprises to promote the role of produce. On this issue will undoubtedly contribute to a thorough understanding of the host countrys government and enterprises to take appropriate measures in order to achieve a more effective use of foreign investment, have contributed to the purpose of spillover effects.2. Understanding of evolution: foreign direct investment in the host countrys influence and role Looking back in history, peoples attitude toward foreign direct investment has experienced from the initial breach of prudent to open and then take the initiative to attract process. In the late 1950s, foreign direct investment in a limited scale and scholars only treat it as capital flows between countries in international trade theory to be discussed to the late 1960s, with the scale of direct foreign investment and the expansion of scholars began to focus on on the market structure of the host country its impact and influence. Study results show that the mainstream, foreign direct investment by the sponsors of the national characteristics of an oligopoly market caused by the researchers are worried that foreign direct investment will be the domestic market imperfection of the spread to other countries. At the same time, prices on the international transfer of enterprises, as well as the study on foreign direct investment in the uneven development of the studies have strengthened the right of foreign direct investment resentment and thus the 1960s all countries, particularly developing countries on foreign direct investment holders reject or strictly limit policy. 1970s, the international lending strong support to the capital of the Asian emerging countries the export-oriented economy, as well as Latin American countries import substitution- based economy flourish; However, the 1980s to government borrowing at the core of the Asian emerging mode of financing the development of the country by setbacks; and representatives to Mexico for some Latin American countries and into the debt crisis of developing countries in order to make foreign direct investment in the form of the introduction of international capital had to be re-thinking. At the same time, scholars of foreign direct investment in the in-depth study also showed some positive results. Many studies show that foreign direct investment in the host country has many spillover effects, particularly in the role of the international transfer of technology by the special attention. Thus, the host country for foreign direct investment in a major attitude change, whether passive or active to attract international capital to create opportunities for the international transfer of technology, most countries tend to start some open and the purpose of the introduction of foreign direct investment policy. Since the 1990s, and people of foreign direct investment has had a positive perception further. Compared to other international transfer of technology, people have found that the more the latest technology and most profitable of the technology, the more likely international companies through international direct investment in the way in the host country use. The reason is that, from the point of view of international companies using such technologies that will form t