Relationship Of Manufacturing ODI And Industrial Hollowing

This paper，according the phenomenon of industrial hollowing once thrivinglocal industry in eastern China’s coastal and contacting our recent strong advocate of"going-out" strategy，in order to explore whether there is an inevitable link betweenthe two，and whether the manufacturing industry ODI（overseas direct investment）of China’s manufacturing enterprises are the main reasons of hollowing out ofindustrial.The article firstly carries on the analysis from the point of view of hollowingout，which is the one consequence of manufacturing industry ODI，includingJapanese’ODI and the origin of Industrial Hollowing and the trend of China’sIndustrial Hollowing.Second，further analysis of the relationship between the currentsituation of China’s manufacturing and industrial hollowing indicate that our industryappear hollowing trend but nothing to be feared. Then based on the analysis ofvarious theories on the relationship between the two qualitative，draw the ODI maylead to the conclusion of industry hollowing out. After the CD production function inaccordance with Eviews empirical analysis，the result is that ODI have little to dowith industrial hollowing out. Therefore we can still vigorously develop ODI andencourage enterprises to go-out，which is consistent with the present industrial policy.Finally，according to the results of the analysis，putting forward China’s ODIpolicy for government: supporting private enterprises to go out and the developmentof high-technology industry，assisting the enterprise transnational merger andacquisitions，helping enterprises to enhance economic and trade cooperation on theoutside overall planning area，improving relevant rules and regulations of ODI.