The Impact Study Of Chinese Outward Foreign Direct Investment On The Upgrading Of The Industrial Structure

With the rapid development of the economy in the world today, the factors ofproduction flow faster in the global scope, and finally strengthen bilateral economicrelationship and dependence constantly. One of the most outstanding performance isthe vigorous development of multinational investment. In addition, the transfer offactors of production between countries can promote the upgrading of industrialstructure. After the high speed development of our country economy, the problems isthe constant adjustment and upgrading of industrial structure. How to adjust theindustrial structure of our country further in the current international environment, hasbecome a project which the government and economists devote to study in recentyears. China’s outward foreign direct investments develop well, the influence to thedevelopment of China’s economy is becoming more and more obvious. Does China’soutward foreign direct investment influence the upgrading of domestic industrystructure? And how does it affect? Will it be affected by external factors? Thisarticle will analyze these questions.This structure is divided into four parts: First, this paper takes the theoreticalanalysis, summarizes the international direct investment theory involving upgradingof industrial structure, establishes the theoretical basis of an outward foreign directinvestment influencing the industry structure, and summarizes the domestic andforeign related research from technology spillover and the comparative advantages.The second part, it analyzes the influence mechanism about China’s foreign directinvestment promoting the upgrading of the industrial structure from both micro andmacro perspective. In the micro aspect, analyze the influence mechanism respectivelythrough the motivation of the market, technology, resources and strategic asset. Inmacroscopic aspect, introduce the upgrading mechanism of the industrial structurefrom trade structure and supply and demand structure. The third part, it expoundsChina’s development situation of the industry structure from the size, industrydistribution, regional distribution and characteristics of the Chinese foreign directinvestment. The fourth part is the empirical analysis of OFDI promoting theupgrading of the industrial structure. It is divided into three steps: the first step,perfect the chenery model by introducing OFDI and net exports and such variables,and win two empirical model for measuring the relationship between China’s OFDIand the upgrading of the industrial structure. The results of the analysis show that OFDI can promote the upgrading of China’s industrial structure, and it is related tothe size of the OFDI. The second step, analyses the conduction factor through whichthe OFDI influence the upgrading of the industrial structure. Conclusion shows thattechnology progress, getting the key resources and expanding export scale canpromote the upgrading of industrial structure, but the way of expanding the importscale will hinder the upgrading of industrial structure. The third step, through theanalysis of the threshold effect, we can get a conclusion that the higher thedevelopment degree of Local financial market is, the more beneficial to China OFDIpromoting the upgrading of industrial structure.Therefore, we should be reasonable planning Chinese outward foreign directinvestment industry, and improve the related external environment actively, give fullplay to the promoting role of the outward foreign direct investment affecting theupgrading of domestic industry structure.