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Based on the provincial panel data from 2008 to 2017, the Hansen threshold regression model is constructed to empirically test the threshold effect of FDI spillover and the proportion of employment in tertiary industry. The research shows that FDI spillover has a double threshold effect based on the proportion of tertiary industry employment. When the threshold value is lower than the first threshold, it shows a negative effect; the higher the employment proportion of the tertiary industry, the more significant positive effect of the spillover; human capital and research and development stock are two other important factors to promote regional technology level. Both eastern and western regions have FDI spillover threshold effect based on the proportion of employment in the tertiary industry. FDI spillover threshold effect based on the proportion of the tertiary industry employment exists in the east, the middle and the west. Wherein, the east has the highest threshold and the most significant promotion effect, while the west has the lowest threshold and has a restraining effect on the local technical level. Keywords—Threshold regression; FDI spillover; The proportion of employment; Tertiary industry

The Threshold Effect of FDI Spillover Absorption and Proportion of Employment in Tertiary Industry