Research On The Impact Of China's Outward Foreign Direct Investment On Equipment Manufacturing Industry

On the basis of studying the theory of outward foreign direct investment at home and abroad,this paper establishes an analysis framework of outward foreign direct investment and the development of equipment manufacturing industry,focusing on the spillover effect of outward foreign direct investment on manufacturing industry,especially the equipment manufacturing industry,that is,the effect on resource allocation,industrial upgrading,industrial upgrading.This paper analyzes the impact of outward foreign direct investment on the development of China's equipment manufacturing industry in different economic development level areas,and puts forward some solutions and policy suggestions for the current problems of China's equipment manufacturing industry,such as high pressure on resources and environment,low level of high-end and weak international competitiveness.Around this theme,the research and analysis are as follows:First of all,in order to explore the impact of outward foreign direct investment on manufacturing industry,especially equipment manufacturing industry,this paper summarizes the theory of outward foreign direct investment,the relevant theory of the development of equipment manufacturing industry and related research literature,in order to seek theoretical support for the research.Theoretical and literature studies show that OFDI has a certain impact on the development of equipment manufacturing industry.On the whole,in terms of resource allocation,outward foreign direct investment plays a significant role in improving the efficiency and ability of global resource allocation by making full use of the full competitiveness of the market.In terms of industrial upgrading,OFDI can significantly promote the industrial optimization and upgrading of the home country,but it can also easily lead to the phenomenon of "industrial hollowing out".In terms of technological progress,due to the reverse technology spillover effect of outward foreign direct investment,outward foreign direct investment can promote the industrial technological progress of the home country,but the premise of the effect is that certain conditions are needed,and the effect of the effect is still different under certain specific conditions.Secondly,the paper analyzes the current situation of China's outward foreign direct investment and equipment manufacturing industry.It is mainly to identify the outstanding problems in China's OFDI and equipment manufacturing industry,and analyzes the reasons for the problems.Through comparative analysis,we can see that China's outward foreign direct investment has experienced a rapid growth of more than ten years,and the current development trend tends to slow down.Combing the relevant statistical data,it is found that China's equipment manufacturing industry has achieved great development,but the rapid development stage of equipment manufacturing industry in China has been concluded.At present,there are many problems: the population dividend disappearing,the great pressure of resource and environment and the domestic resource environment difficult to support the rapid development of equipment manufacturing industry,unreasonable capacity layout of equipment manufacturing industry,slow industrial transformation and upgrading,and the low degree of high-end industrialization.Further comparative analysis of the competitive advantages of China's equipment manufacturing industry finds that at present,China's equipment manufacturing industry has become the first in the world in the international market,and it is a real equipment manufacturing country.However,from the perspective of comparative advantage index and trade competition index,they are lower than Japan and Germany.Compared with the developed countries with higher industrialization level,however,there is still a gap.This also proves that the equipment manufacturing industry in China is "big but not strong",which has been locked in the middle and low-end links of the global value chain by unreasonable international division of labor for a long time,and its international competitiveness needs to be improved.Moreover,in order to further research and analyze,find out a path and method to the problem,this paper attempts to establish a unified analysis framework of outward foreign direct investment and the development of equipment manufacturing industry,and through empirical analysis,from three levels of resource allocation,industrial upgrading and technological progress,it analyzes whether China's outward foreign direct investment has an impact on the equipment manufacturing industry,and what kind of impact and impact it has.At the same time,it also proves whether it is feasible to solve the outstanding problems of equipment manufacturing industry through outward foreign direct investment.From the perspective of industrial resource allocation,this paper makes an empirical analysis on the resource allocation effect of China's outward foreign direct investment on equipment manufacturing industry.Based on the different motives of China's outward foreign direct investment,this paper analyzes the influence mechanism of outward foreign direct investment on the effect of resource allocation,and uses an empirical model to test the results.In general,China's OFDI has a significant positive impact on the allocation of equipment manufacturing resources.From the regional perspective,there are differences in regions,and the growth of OFDI in Northeast China will significantly positively affect the equipment manufacturing industry capital.The source allocation has the most positive effect,the eastern region has a great influence,and the middle and west regions have a significant negative impact on the OFDI.From the perspective of the resource allocation effect of China's OFDI to developing countries and developed countries on China's equipment manufacturing industry,there are positive and significant impacts,and the developing countries are significantly greater than those of developed countries.From the perspective of China's OFDI,China has the most significant resource allocation effect on the developing countries in the forward direction of OFDI.They are Southeast Asian countries such as Vietnam,Malaysia,Thailand as well as Mongolia,Tajikistan,Russia,Brazil and Egypt.Most of these eight countries are neighbors,and most of them are along the "one belt,one road" : a key area for future resource seeking investment.The reverse OFDI of China to developed countries,the top eight developed countries with significant resource allocation effect on China's equipment manufacturing industry,are Japan,Germany,Italy,Australia,New Zealand,the United States,Singapore and Canada,which are the key countries in China to obtain investment in strategic assets in the future.All of these prove that China can allocate resources globally and solve the pressure of resources and environment by means of OFDI platform,and point out the direction of global resource allocation in the future.From the perspective of industrial upgrading,this paper makes an empirical analysis on the effect of China's outward foreign direct investment on the upgrading of equipment manufacturing industry.It first analyzes the impact mechanism of upgrading effect from the enterprise and industry level,and then measures the high-end degree of China's equipment manufacturing industry,which is used as the evaluation index to measure the upgrading of equipment manufacturing industry.Using the two-way fixed effect stepwise regression model,this paper empirically tests and analyzes the industrial upgrading effect.The results show that:China's outward foreign direct investment has a significant positive impact on the high-end development of equipment manufacturing industry.However,there are regional differences.The positive impact is most significant in the Northeast,more significant in the East,negative in the Middle,and not obvious in the West.This also proves that China can solve the problems of slow upgrading of equipment manufacturing industry,low level of high-end and low position of global value chain through outward foreign direct investment.However,for the economically underdeveloped central and western regions,it is necessary to appropriately control the scale of foreign investment to prevent "industrial hollowing".From the perspective of technological progress,this paper makes an empirical analysis on the effect of China's outward foreign direct investment on the technological progress of equipment manufacturing.From the transmission path of enterprises and industries,this paper analyzes the influence mechanism of China's outward foreign direct investment on the technological progress effect of equipment manufacturing industry,and uses the method of Dynamic Panel System GMM to make an empirical analysis on the effect of China's provincial OFDI on the technological progress of equipment manufacturing industry.The results show that: China's outward foreign direct investment has a significant impact on the technological progress of equipment manufacturing industry,showing a significant positive U-shape,that is,in the initial stage of foreign investment,the increase of outward foreign direct investment will reduce the technological progress of equipment manufacturing industry,but when the outward foreign direct investment reaches a certain scale and the growth rate of foreign direct investment exceeds a certain threshold,the outward foreign direct investment will significantly promote the development of equipment manufacturing industry.From the regional level,the eastern region has a faster positive impact,followed by the northeast region,and the central and western regions have a slower impact.At the same time,it also proves that through the reverse OFDI to developed countries,China can use the reverse technology spillover effect of outward foreign direct investment to promote China's equipment technology level and solve the problem of "big but not strong" in equipment manufacturing industry.At the same time,it is necessary to improve its own knowledge accumulation level.Finally,the paper puts forward countermeasures and suggestions to the problem: first,actively and steadily promote outward foreign direct investment.We should appropriately and reasonably control the scale of China's outward foreign direct investment.Expand the scale of investment in ?one belt,one road?,drive domestic technology and equipment export,resolve the pressure of resources and environment,and solve the problem of overcapacity in equipment manufacturing industry.We will increase cross-border M&A investment in developed countries and quickly acquire strategic assets that are short of domestic assets.We should implement differentiated incentive policies for outward foreign direct investment of domestic provinces and regions.Second,actively promote the implementation of the "going out" strategy of equipment manufacturing industry to drive the transformation and upgrading of domestic industries.Third,implement the innovation driven development strategy of equipment manufacturing industry.Fourth,give full play to the role of government service and guidance.The innovation of this paper is mainly reflected in: first,the research perspective is novel,that is,to investigate the development of equipment manufacturing industry from China's outward foreign direct investment.The second is to the view that China's outward foreign direct investment has distinctive characteristics of socialism with Chinese characteristics.The third is to put forward the policy of promoting China's industry to the high-end of the global value chain with the help of the positive "spillover effect" of outward foreign direct investment.