Research On The Economic Effect Of China’s Outward Foreign Direct Investment

Since the reform and opening up, especially putting forward the strategy of ’Going out’, China’s outward foreign direct investment (OFDI) is developing all the time and the scale of OFDI has become larger and larger year by year. However, the theoretical and empirical studies on OFDI from developing countries are less than enough let alone the studies expanding to China. Based on the analysis of the status and features of China’s OFDI and combined with the economic effects of China’s outward FDI theory, this paper explored the factors and mechanisms which affect China’s OFDI on the economic effects such as trade, employment and reverse technology spillover effect, and in addition, on the basis of qualitative analysis, apply the empirical methods to verify the relationship between the China’OFDI and the foreign trade, the employment and the technology spillover effect respectively. Specifically speaking, the impact of China’s outward FDI on trade from the two aspects of inputs and outputs are verified and that the outward FDI and the trade are complementary has been concluded. As to the effect of outward FDI on employment, we analyze the relationship between the outward FDI and the total employment respectively concluding that China’s outward FDI could not stimulate the total employment. With regard to the effect of outward FDI on technology spillover effect, through applying the regression analysis, we have found that the outward FDI benefits the technology spillover effect.Finally, according to the study results, the outward FDI have a positive effect on the economic effect to play, therefore, improving the quality of outward FDI will do good to the economic effect. From the perspective of government, main constructive measures and suggestions are listed including establishing and perfecting outward FDI laws and regulations system, formulating the overall strategic plan of outward FDI, implementing encouraging preferential outward FDI policies and measures. From the perspective of companies, the measures are as follows:explicitly identifying the investment industries and the investment choice, while improving enterprise innovation capability and strengthening talent training.