China's Foreign Direct Investment In Research On The Influence Of The Domestic Industrial Structure Adjustment

With the trend of economic globalization deepens day by day, all countries accelerate the pace of integration into the global economy. China pays more attention to the strategy of "going out" as well as the introduction of foreign capital, which makes its outward foreign direct investment (OFDI) developed rapidly. OFDI affects many aspects of China’s economy, especially affects industrial structure adjustment. This paper mainly studies the effects and influencing routes of China’s OFDI on its industrial structure adjustment, puts forward some corresponding suggestions, in order to make China’s OFDI more smoothly, thus promoting the optimization and upgrading of domestic industrial structure.Based on the review of foreign and domestic literatures, firstly, this paper analyzed the main factors which affect a country’s industrial structure. Secondly, the paper analyzed the history and the current situation of China’s OFDI and industrial structure, besides, it made descriptive statistics on the relationship between them. Thirdly, according to the purpose of China’s OFDI, this paper divided it into four types which are natural resources seeking, technology seeking, market seeking and investment profit seeking. What’s more, the paper researched the effect mechanism to industrial structure adjustment, and picked out9conducting variables which are scale of export and import, export commodity structure, import commodity structure, technical level, scale of employment, composition of employment, domestic investment and national income, this work laid the foundation for the empirical analysis.In the part of empirical research, based on the data from1985to2009, the paper analyzed the relationship between OFDI and domestic industrial structure adjustment, which shows that OFDI promotes the optimization of the industrial structure. Then through the conducting variables, the paper analyzed the paths of OFDI to upgrading the industrial structure, which shows that OFDI promotes the upgrading of domestic industrial structure mainly through enhancing the level of domestic technology, import creation and optimizing the structure of export commodity, at the same time, OFDI hinders the upgrading of domestic industrial structure through influencing the structure of import commodity.Finally, bases on the empirical results, this paper put forward some corresponding suggestions on the government and enterprise level, in order to make China’s OFDI more smoothly, thus promoting the optimization and upgrading of domestic industrial structure.