Research On The Industrial Upgrading Effect Of China's Outward Foreign Direct Investment

In 2016,the world economic growth was sluggish,and the global recovery of foreign direct investment was still rugged.After strong growth in the previous year,the global direct investment outflow of US$1.45 trillion showed a slight decline in 2016.The Chinese government has actively promoted the construction of the "One Belt and One Road" and steadily carried out international capacity cooperation.The"going out" working system has been continuously improved.Since the relevant authorities released annual data in 2003,China's foreign direct investment has increased continuously for 14 years.In 2016,the traffic volume was 72.6 times than that of 2002,accounting for a global share that increased from 0.5%in 2002 to 13.5%.The number and position of foreign direct investment in the world have become increasingly prominent;the average annual growth rate in 2002-2016 was as high as 35.8%;stocks jumped from 8th in 2015 to 6th,accounting for a 0.8 percentage point increase.In 2016,China's outward foreign direct investment once again surpassed foreign direct investment(US$134 billion)and achieved net output of capital under two-way direct investment for two consecutive years.Under the background of the increasing outward foreign direct investment,can the "going out" mode which plays an important role in outward foreign direct investment promote the upgrading of our industrial structure?What is the impact of the outward foreign direct investment on industrial upgrading to different countries?In the context of economic globalization,no country can be closed.In other words.The country that china has been outward foreign direct investment may be the country that china actively attracts foreign investment.After eliminating the potential impact of foreign direct investment,what is the effect of China's industrial upgrading on different types of countries compared to China?This article takes the industrial upgrading effect of China's outward foreign direct investment as its theme,it mainly discusses several issues:First,can outward foreign direct investment promote the upgrading of China's industries?Second,how does China's outward foreign direct investment in different countries affect the industrial upgrading of our country?Third,what factors of the investee countries have impacts on the industrial upgrading of China's outward foreign direct investment and how much the impact is?Fourth,after removing the potential impact of foreign direct investment,will the effect of outward foreign direct investment on industrial upgrading be changed and how much will change?To be specific,firstly,this paper reviews and sorts the existing papers to find out the missing and unconsidered parts,as a source of the research content.Secondly,the countries that have made direct foreign investment in our country are divided into economically developed countries,resource-rich countries,emerging economies and other developing countries that do not include abundant resources.We will study the effect of foreign direct investment in these countries on China's industrial upgrading.Finally,after removing the potential impact of foreign direct investment on industrial upgrading,the industrial upgrading effect on OFDI is stronger or weaker.The change of industry level will not produce observable and lasting effect on ofdi and labor input,which is consistent with the expectation.Changes in industry levels will have an impact on themselves,but the effect will diminish over time.The long-term impact of ofdi on industry level is weak,and short-term foreign direct investment policy can play a role in the improvement of industry level.The effect of labor input on industry level is short,that is,the horizontal direction of labor input without long-term effect has an impact on the industry level,but the impact is not significant.According to the granger causality test,lnofdi,lnpeople and(lnipeople)2 are the granger reasons of lniu,that is,the external direct investment and labor input are the reasons for the industrial level upgrade.When inofdi was interpreted as a variable,lniu refused to be the granger cause of Inofdi at the 1%level.When lnpeople was interpreted as variable,Iniu refused to be the granger cause of lnpeople at 5%level.(lnpeople)2,as the test result of interpreted variables,rejected it as the granger cause of lnpeople at 5%level.According to grey correlation analysis,China in developed countries,the resources abundance countries and emerging economies and other developing countries of foreign direct investment and our country has more than 50%of the connection between the industry level,this shows that foreign direct investment can produce an effect on the promotion of the industry.