The Mechanism And Effect Study Of China's OFDI To Resolve Excess Capacity

In recent years,with the rapid economic growth,China's comprehensive strength has been improved.However,while the total amount of economic growth,China's heavy chemical industry there has been a certain degree of excess capacity,light industry and emerging industries are also facing the same problem.Outward foreign direct investment has become an important way to resolve excess capacity through external direct investment to transfer domestic sunset industry and promote the growth,association and radiation industry of emerging industries.It is also the need to implement the strategy of ‘going out' strategy and ‘going all the way' strategy.This thesis analyzes the mechanism of outward foreign direct investment to resolve excess capacity: enterprises in order to open up the international market for outward foreign direct investment in the investment process can be transferred to the current production capacity surplus industry.Some enterprises in order to adapt to the international business environment and consumer demand in the process of foreign investment,forcing its to improve the technical level and efficiency,so as to promote the home country's technological innovation and product innovation,improve the mother country's enterprise productivity and capacity utilization,eliminate excess capacity,and ultimately solve the excess capacity.In the process of outward foreign direct investment will also produce the export trade association effect,promote the home country products and raw materials exports,and expand the output of the parent country surplus production capacity.The rapid development of financial markets and lower financing costs can stimulate excess capacity enterprises to actively carry out the outward foreign direct investment and effectively transfer the current surplus production capacity.Furthermore,this thesis analyzes the current situation of overcapacity and outward foreign direct investment in China by means of statistical description,and selects relevant indicators to measure capacity utilization to measure overcapacity.Then,this thesis analyzes the dynamic panel data of the national,eastern,central andwestern regions respectively and the robustness test.The results show that foreign direct investment can significantly contribute to resolving excess capacity.The increase in the degree of openness and the expansion of foreign direct investment can effectively improve the utilization rate.The dual effects of financial efficiency and outward foreign direct investment are also conducive to resolving excess capacity.The efficient operation of high-speed financial markets facilitates the effective allocation of funds and provides a guarantee for the technology spillovers of outward foreign direct investment.And further promote China to effectively resolve excess capacity.Combined with the above mechanism analysis and empirical test,this thesis puts forward the following policy recommendations: increasing the outward foreign direct investment;implementing differentiated outward foreign direct investment policy;promoting international industry cooperation in key industries;improving financial efficiency;enhancing risk prevention and control.