Study The Impact Of Fdi On The International Competitiveness Of China’s High-Tech Industry

Foreign direct investment is the new driving force of China’s economic development. Foreign capital not only introduces the funds, but also adjusts the industrial structure in our country. At the same time, high-tech industry is the key power to promote the modern economic growth. It has practical strategic significance to analysis and study the effect of foreign direct investment on the international competitiveness of China’s high-tech industry.First, this paper sums up the influence factors and mechanism of foreign direct investment on the international competitiveness of high-tech industry on the basis of related literature. Then, calculate the quantitative indexes of the international competitiveness of China’s high-tech industry, like NTB, PRO and so on. And compare the indexes in the international and industry levels. Next, estimate and compare the impact of foreign direct investment on the international competitiveness of our country’s high-tech industry by three means with some relevant data from1996to2010respectively. The three means are linear regression model, time sequence model with single factor and panel data model with multiple factors. Finally, put forward some policies and suggestion on how foreign direct investment can increase the international competitiveness of high-tech industry effectively.The research results show that foreign direct investment can promote the international competitiveness of high-tech industry, the influence is greater than the effect of foreign direct investment on the international competitiveness of our whole economy. In terms of industry, there is a gap in the quality of the utilization of foreign capital between industries. Foreign direct investment can enhance the international competitiveness of pharmaceutical manufacturing, medical equipment and instrument industry, aerospace plane manufacturing, but will reduce the international competitiveness of electronic and telecommunication equipment, electronic computer and office equipment manufacturing.