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The Empirical Study On The Impact Of China’s OFDI On Domestic Industrial Structure

Posted on:2018-12-16Degree:MasterType:Thesis
Country:ChinaCandidate:X J MaoFull Text:PDF
GTID:2359330518993882Subject:International Trade
Abstract/Summary:PDF Full Text Request
Under the fast-changing international economic environment,China’s economy is facing both internal and external pressure.So the need for transformation and upgrading of the industrial structure in order to get more momentum for the economy is extremely urgent.And now under the "Going out" strategy,the increasing number of outward foreign direct investment(OFDI),to a large extent,is shouldering more responsibility of upgrading the domestic industrial structure.Particularly in "the Belt and Road" strategic context,OFDI,which in the way of international production and equipment cooperation was given the higher mission of regulating industrial structure.Under this background,this paper attempts to gain more theoretical and empirical evidences to find out whether the practice of China’s OFDI could accelerate the updating of domestic industrial structure and how much impact it could produce.The first part of the article focuses on the mechanism analysis of how OFDI could exert influence on the upgrading of the industrial structure.In the second part,this article tries to respectively describe the development of OFDI and the progress of industrial structure stage by stage.And after comparative analysis,it could be concluded that China’s OFDI does impact the domestic industrial structure.That is based on at least two observations.For one,OFDI and the domestic industrial structure developed in the same direction with similar tempo;for another,corresponding changes in different aspects of the industrial structure has been observed from surge of different kinds of OFDI.However,when compared with the experience of the United States and Japan,China’s OFDI still has long way to go,both in quantity and in quality.Therefore,it may not be effective enough in the process of updating the domestic industrial structure.In the next part,considering the consistency in the industrial structure and the endogeneity caused by the mutual effects between OFDI and the industrial structure,this article works out two Dynamics Panel Data Models based on data from 23 typical provinces of year 2003-2014.Through the empirical analysis,it’s clearer that China’s industrial restructuring can be affected by the progress of OFDI.Specifically,the impact on the upgradation of the industrial structure is positive but limited,and that on the rationalization of the industrial structure is negative.As predicted before,the relatively small scale and the unbalanced structure of OFDI should be responsible for that.Finally,this article provides several policy recommendations both on the micro aspect and on the macro aspect.
Keywords/Search Tags:OFDI, industrial structure, mechanism analysis, endogeneity, system GMM
PDF Full Text Request
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