The Study About The Interaction Relationship Between IFDI And OFDI Of China

With the development of economic globalization and China's deepening opening up,China has become the world's second largest economy,and the contribution to and influence on the world economy is increasing,and the development of the world economy also has an important influence to our country.Since China's reform and opening up,IFDI is increasing,and OFDI has been in the rapid growth after China's accession to the WTO.In 2015,China's IFDI for the first time exceeded the OFDI,being a net exporter of capital.Maybe,IFDI has interactive relationship with OFDI,and studying the interaction mechanism of this relationship is of great significance for the good use of foreign capital and foreign direct investment to China's economic development.Based on this,by referring to the literature on IFDI and OFDI each influence factor research,I find out the connection between IFDI and OFDI link factors,and explore the interaction mechanism between China's IFDI and OFDI.This paper proposes that IFDI and OFDI interact through the upgrading of the industrial structure and the foreign trade mechanism,using the empirical VAR analysis of China's macroeconomic data in 1983-2015.The empirical results show that China's IFDI through the two mechanism has a positive impact to the OFDI of China,and this relationship is significant,but the effect of China's OFDI on IFDI through these two channels is just not significant,even generating a negative effect on IFDI of china.In this paper,theoretical and empirical perspective is novel,there is also an important reference value for the research and the development of China's regulation of two-way FDI policies in order to contribute to steady development of national economy.