Outward Foreign Direct Investment、Technological Innovation And Industrial Structure Upgrading In China

With the in-depth development of economic globalization, outward foreign direct investment has become an important means for countries to participate in international competition, and has become the dominant force in promoting world economic development. Through outward foreign direct investment, it not only can make production factors and resources allocate and use more rationally in global scale, but also can push science and technology spread and develop in a rapid speed among countries. Industrial structure upgrading is an important topic for countries’economic development in a long time. Industrial structure upgrading can be realized through production factors and resources’movement and transfer in countries, so conducting outward foreign direct investment has become an important and effective way to promote its industrial structure upgrading. Through conducting outward foreign direct investment, a country could get advanced technology from other countries, accelerate its technological innovation, speed up efforts to update its industrial structure. In recent years, the rapid development of China’s outward foreign direct investment puts an extensive and far-reaching influence on China’s economy. The significance not only lies on looking for raw materials, developing international market, acquiring advanced technology and management experience to enhance the enterprises’ competitiveness in our country, but also it is an important engine to push our country’s industrial structure upgrading and promote our country’s economic development.In this context, this article reviews related theory about the impact of outward foreign direct investment to industrial structure upgrade, on this basis, this article introduces the mechanism of outward foreign direct investment to promote industrial structure upgrade, and then analyzes the mechanism of outward foreign direct investment to promote industrial structure upgrade through technological innovation, combines our country’s current situation, constructs econometric models to study how China’s outward foreign direct investment influents industrial structure upgrading through technological innovation by using the way to combine theory analysis and empirical analysis. First, this article selects China’s relevant data from 2003 to 2011, analyzes the relationship between China’s outward foreign direct investment and industrial structure upgrading, then, adds the variable of technological innovation to analyze how outward foreign direct investment influents industrial structure upgrading through technological innovation. The results show that China’s outward foreign direct investment can indeed promote industrial structure upgrading through technological innovation, but this effect is not obvious, and this industrial structure upgrading promotion in eastern is bigger than in middle and western area.