The Research On Economic Effects On Home Country Of China’s Fdi To Asean

Since China and ASEAN began formal dialogue two decades ago,especially CAFTA was officially set up in2010, China’s outward FDI to ASEAN has developed rapidly. Today, ASEAN has become the largest market for Chinese enterprises to invest overseas. With the expanding scale and the broadening field of China’s outward FDI to ASEAN, many economic effects appear gradually. Especially the economic effects to home country, such as the effect of China’s economic progress, of adjustment of industry structure, of progress of technology and of international trade, play more and more important roles.However, due to the late start of China’s outward FDI to ASEAN the amount is small, research in this field is less than enough.For the reason above, this paper uses quantitative analysis and qualitative methods to test the effects of China’s outward FDI in ASEAN on China,the home country, these effects lie in economic progress, international trade, adjustment of the industry structure and progress of technology. When studying the effects on the technological progress effects, this paper uses technology gap to analyze it. First, three hypotheses are made, that is, technology gap not affecting technology spillover from ASEAN to China, technology gap and technology spillover from ASEAN to China existing linear and linear nonlinear relationship. Secondly, the models are estabished under each hypothesis. Thirdly, through empirical test, the most reasonable and realistic model is selected.Then the result is interpreted fully. On this basis, the conclusions are as follows:with regard to economic growth China’s outward FDI to ASEAN on the role of promoting economic growth is not obvious; with regard to the adjustment of industry structure, China’s outward FDI to ASEAN’has been playing an important role in optimization and upgrading of China’s industrial structure; with regard to technology progress, the technology gap between China and ASEAN hinders the technological spillover from ASEAN to China; with regard to the development of international trade, China’s outward FDI to ASEAN stimulates the growth of bilateral trade.Finally, the strategies respectively for our government, the Chambers of Commerce and our enterprises are put forward. In the activities of China’s outward FDI to ASEAN, our government should play a role of policy guider and financial supporter; our chambers of commerce should build the bridge to investment to ASEAN for our enterprises; our enterprises should choose the appropriate industry and region to invest according to their own characteristics.Through that, the economic effects of China’s outward FDI in ASEAN on the home country can be further improved.