Comparative Study Of China And Japan's Industrial Upgrading Effect Of OFDI

Since 2015,China has become the second largest foreign direct investment country and net capital exporting country.Our foreign direct investment has a large scale,fast growth and high global share.However,China's foreign direct investment is still in the primary stage.There is still a gap in investment stock between China and developed countries,the problems of unreasonable investment structure and insufficient investment in developed regions need to be solved.2018 is the 40 th anniversary of China's reform and opening up,to build an open economic country,China should attach importance to the role of OFDI in optimizing the industrial structure.The national comparative study can provide reference for China's OFDI.By comparing China's and Japan's foreign investment patterns and development level,it can provide a reference for China's new round of opening up.This paper analyzes the industrial upgrading effect of China and Japan's OFDI by combining theoretical and empirical research methods.Firstly,review the research of OFDI and its effect to domestic industry upgrading.Secondly,combed the mechanism of the impact of OFDI on domestic industrial structure by micro and macro level,and summed up into six categories,namely,to solve the resource bottlenecks of the industrial upgrading,to seek a larger market for the dominant industry,to improve the industrial efficiency,to obtain the key strategic resources,to transfer the marginal industry and to optimize the upstream and downstream structures.Thirdly,according to the theoretical framework in chapter two,this paper analyzes the industrial upgrading effect of OFDI of China after reforming and opening up and Japan after second world war.Describe the development characteristics of China and Japan,and compare them with each other.Fourthly,based on the investment and industrial data of 1970-2015 years in Japan and 1982-2016 years in China,we build VECM model separately.The model parameters,impulse response and variance decomposition analysis show that the growth of OFDI has a promoting effect on industrial upgrading,which is a long-term and gradual step.The effect of promoting effect is more obvious in China than in Japan.Finally,in the new round of opening and "The Belt and Road" constru ction background,we puts forward four suggestions.