A Research On The Influence Of China's Outward Foreign Direct Investment On The Upgrading Of Manufacturing Structure

Over the past ten years,China's foreign direct investment has developed rapidly and its volume has steadily expanded.Now it has become one of the new growth points of China's economy.Since 2011,the scale of China's manufacturing industry has successfully surpassed the United States and become the world's largest manufacturing power.However,the core element of the rapid development of China's manufacturing industry is the cheap labor force,and there are some typical problems,such as the huge energy consumption and serious damage to the ecological environment.The relatively extensive development model makes the actual development level of China's manufacturing industry still lagging behind the developed countries,and will be not conducive to the stability and sustainable development of China's manufacturing industry.Therefore,it is imperative to upgrade the industrial structure of manufacturing industry.Promoting the upgrading of manufacturing structure has become the main task of China's manufacturing industry for a long time now and even in the future.On the basis of a brief description of the background and significance of the topic,this paper first combed the relevant literature and reviewed the existing literature on the meaning of the upgrading of industrial structure,the method of measurement and the development of the theory of foreign direct investment,and systematically combed the research achievements in the related fields.Then,this paper analyzes the current situation of China's manufacturing industry,and estimates the level of China's manufacturing industry's structural upgrading,so as to provide reference for the upgrading of the manufacturing industry.In the theoretical analysis of the structure upgrading of the domestic manufacturing industry,the mathematical analysis model is first constructed to demonstrate the rationality of the overseas investment activities of the developing countries to the developed countries,and to analyze the influence mechanism of China's foreign direct investment on the upgrading of the domestic manufacturing industry,which has laid a solid foundation for the empirical study.The theoretical basis of reality.Then,using the panel data of 30 provinces(municipalities and autonomous regions)in 2005~2016,this paper constructs a two-way fixed effect model and empirically tests the impact of FDI on the upgrading of domestic manufacturing industry.The empirical results show that the foreign direct investment has more advantages than the disadvantages of the domestic economic development.As a result,the growth of foreign direct investment will help to improve the structure level of the manufacturing industry.Among them,the average level of foreign direct investment will increase by 1%,and the level of manufacturing industry will increase by 0.0325%.In addition,the technological progress has a significant positive impact on the upgrading of the manufacturing structure,which indicates that the upgrading of the technical level is one of the important reasons for the upgrading of the manufacturing structure.At the same time,with the increase of foreign direct investment,it will also help to improve the level of manufacturing industry structure.However,with the expansion of opening up,the upgrading of domestic manufacturing industry will be hindered,though this is not statistically significant.In order to further explore the spatial heterogeneity of FDI to the upgrading of manufacturing structure,the regression analysis of panel data in eastern,central and western regions has been carried out in this paper.The results show that only the foreign direct investment activities in the eastern region will have a significant positive impact on the upgrading of its manufacturing structure,while the central and western regions have a more significant positive impact on the upgrading of the manufacturing structure.FDI has no significant impact on the transformation and upgrading of its manufacturing industry.At the end of this paper,the robustness of the above empirical results is tested.The results show that,for the upgrading of China's manufacturing structure,the positive impact of foreign direct investment has a significant positive effect.Finally,this paper summarizes the general research,and proposes to continue to promote the implementation of the "go out" strategy,strengthen the intensity of foreign direct investment,promote the modernization of the industrial structure of domestic manufacturing industry,enhance the attraction of the technological advantage of the enterprise and promote the upgrading of the industry technology.