A Research On Relationship And Mechanism Between OFDI And Industrial Structure Optimization

With our commitment to deepen the implementation of the open policy, OFDI as one of the main methods of participation in international economic activities has achieved remarkable success under the background of globalization. With the rapid development of OFDI, the structure of foreign investment, domestic industrial structure transformation problem has been put on China’s economic development agenda. In the existing study of foreign investment and industrial structure adjustment, the relevant theory of developed countries has developed relatively maturely, and based on the existing theory, the developing countries is developing and improving their own one by combining its own economic background and development characteristics in practice, and mainly discusses how to use OFDI shift economic development model, and how to adjust the structure of its industry. However, there are relatively few paper to study the relationship between the OFDI and industry optimization, and how to coordinate the two systems, then to form a sustainable and healthy development.Taking Guangdong for example, this Paper is going to use the VAR model to study the relationship between OFDI and 2 first class indicator of industry optimization regarding the data from 2003 to 2013 of the typical opening city in Guangdong, with using the method of vertical Scatter-degree method to rate the second indicator of industrial structure optimization index to get the comprehensive index structure rationalization and structure advancement. And we come to the conclusion as follows: Firstly, OFDI has a fluctuant impact on industrial structure rationalization in comparatively short term, and a negative overall one in long term; Secondly, OFDI does not exert a positive influence on industry structure advancement effectively, the spillover effect of technology is not obvious; Finally, rationalization also has a fluctuant influence on OFDI, but a positive total effect in long term, and the advancement of industrial structure always have a positive effect on OFDI, but the degree is not very great. According to the above conclusions, this paper try to make a qualitative explanation from the point of view of economy combined with today’s industrial structure and the OFDI dynamic for interaction of them, and make a further verification through the grey correlation analysis from the perspective of quantitative, so as to induce the interaction mechanism of the industrial structure optimization and the OFDI of Guangdong. Finally, this paper put forward the corresponding policy recommendations according to the analysis results above.