The Upgrade Effects Of China Outward Foreign Direct Investment On The Industrial Structure

At present, under the big background of industrial transformation and the scale offoreign direct investment (OFDI) high-speed growth, our economy shows twocharacteristics: on the one hand, the irrational industrial structure is still moreprominent,locating in the low-end links in global value chain.It need to upgradeurgently. On the other hand, the scale of China’s OFDI is developing with a high speed.In2013,it is the world’s third largest investor for the first time. The flow and stock ofChina’s OFDI is at a record high. Such a vigorous momentum of development,inevitably have effects on the domestic industrial structure adjustment. In thiscontext,this paper studies on the influent mechanism of China’s Outward Foreign DirectInvestment on the Industrial Structure through theoretical and empirical research.In the first place, the sound theoretical foundation is build with the classicalliterature which studies the influences of OFDI on industry structure.In the theoreticalresearch, Research of domestic and overseas scholars temporarily ignore a specialfactor,because of the special system in our country, China’s OFDI is high involvementof government, Investment main body and investment motivations are different fromboth foreign advanced economies and developing countries.So the functions that OFDIhas on the industrial structure are different.In addition,from the part of the empiricalobservation,although there is no lack of panel data empirical research,examine multiplevariable that affects the upgrading of industrial structure at the same time and acomparative study of areas are not common.Therefore, The primary aspect of thisdissertation studied is given some supplements about the defects of the thesis.Then the article briefly expounds the basic theory and a survey on the status ofresearches in China’s OFDI on the Industrial Structure. Furthermore,according to therelative theory. From the perspectives of different industry clusters,different industriesand the same industry,analyze the effects OFDI on industrial structure upgrade.Besides,combining with China’s OFDI own characters,according to different investmentsubject,different investment motive and different upgrade effects,This paper concludesthe upgrade effects of China’s OFDI on the industrial structure.After theory analyzing, the paper makes empirical analysis. Growth models is introduced and In Growth models, the paper add OFDI variable,FDI variable,NXvariable,INV variable,AGDP variable.All of these variables affect industrial structuralupgrading.On this base, we further combined the panel data across18provinces ofChina from2003to2012to makes empirical analysis.The empirical results reveal thatChina’s OFDI have an little function to industrial structure upgrading.It also reveal thatindustrial upgrading effect and OFDI scale is positive interrelated.However, Whetherthe east or central regions,compared to other variables,the upgrade effects of China’sOFDI on the industrial structure are weak.The main reason is that China’s OFDI scaleof a far smaller economy and the upgrade effects usually comes up late.Finally, thearticle sums up the conclusions.