The Effects Of China's OFDI Model On The Complexity Of Export Technology

The "Going out" strategy and the "One Belt and One Road" initiative have promoted the development of China's direct foreign investment.From 2004 to 2016,China's total OFDI increased from US$5.5 billion to US$196.15 billion.The growth rate of total OFDI in China is also growing rapidly.In 2016,the growth rate reached 34.7%.In this environment,it is bound to attract more powerful and willing companies to join the ranks of foreign direct investment.At the same time,companies should choose the most favorable investment model based on their actual situation.This article will analyze the impact of OFDI on the export technical complexity for the two types of Greenfield investment and M&A investment.Through the reading and collating of the literature,the method for understanding the complexity of the export accounting technology of the predecessors and the corresponding research directions and results are known.Secondly,the theory of the export technology complexity was organized and the theoretical basis was mastered.The theoretical model analysis and influencing factor analysis were carried out on the path of foreign direct investment and different investment models on the technical complexity of exports.Then,using the export data,total export data,and GDP per capita of 21 categories of commodities in 251 countries from 2000 to 2016,calculated the technical complexity of exports over the years in China and analyzed the current status of China's OFDI and export technology complexity.At the same time,use the calculated data to empirically analyze the impact of foreign direct investment of different investment models on the technical complexity of exports,and propose policy recommendations based on conclusions.Through the analysis,it is concluded that at this stage,the Greenfield investment has a significant impact on China's exports technical complexity.Although M&A investment can also improve China's export technology,the results show that the relationship between the two is not significant.In most of the statistical OFDI,the amount of Greenfield investment is higher than the amount of M&A investment,that is,the main mode of investment in China still focuses on Greenfield investment.Therefore,the investment model that has a greater impact on China's export technology complexity is Greenfield investment.At the same time,the proportion of M&A investment in China's direct foreign investment is also rising year by year.In the future,the impact of M&A investment on China's export technology complexity should not be underestimated.