Research On China’s OFDI Promote Industrial Upgrading Of The Home Country

With the accelerating process of economic globalization, China’s economy associatedwith the world economy even more closely, the international competitiveness of variousindustries increasingly, the role that foreign direct investment played in China’s industrialstructure adjustment was more and more important. Our country encourage enterprises whichhas a comparative advantage to participate in international economic and technologicalcooperation, which helps to enhance the international competitiveness of the industry andpromote industrial upgrading.Firstly, this paper sorted out the relevant research on OFDI and industrial structureupgrading. On the basis of analysising the current situation of OFDI in our country, analysisthe mechanism of OFDI in different motives with the upgrading of industrial structure inmother country from the theoretical, then analysis the path of China’s OFDI to promotedomestic industrial structure upgrading combined with the status of China’s, and then use thegray model and GM (1,1) forecasting model to study the degree that various industriesassociated with the industrial structure optimization. The results show that the scientific andtechnical services as the representative of technology-seeking OFDI played a significant rolefor the domestic industrial upgrading; market-seeking OFDI, represented in wholesale andretail trade,is an important factor in promoting domestic industrial structure upgrading;resource-seeking OFDI, represented by mining industry has a relatively large impact onenhance the domestic industrial structure. Finally, on the basis of theoretical analysis andempirical testing. Give some propose appropriate policy recommendations on China’s use ofOFDI and promote industrial upgrading: First, fully mobilize the different motives of foreigndirect investment upgrading industrial structure effects; Second, select foreign directinvestment industry consistent with the trend of China’s industrial structure adjustment;Finally, the government should strengthen the leading role of using foreign direct investmentto promote the industrial structure optimization.