Research On Effects Of China's Outward Foreign Direct Investment On Industrial Structure Optimization

Since the 1980 s,the scale of International direct investment has been growing faster than that of international trade.International direct investment has become the new engine of economic globalization.In 2014,China realized net capital output for the first time,with the advancement of the Belt and Road initiative and international production and equipment manufacturing cooperation,OFDI will shoulder the mission of optimizing the domestic industrial structure.Under this background,it is of great theoretical value and practical significance to thoroughly study the impact of China's OFDI on domestic industrial structure optimization.Firstly,based on the existing researches,this paper defines the concept of industrial structure optimization and summarizes relevant theories and the macro and micro mechanism of OFDI affecting domestic industrial structure.Secondly,this paper discusses the development stage of China's OFDI and industrial structure,the influence of OFDI with different motives on the change of China's industrial structure and the current shortage of China's OFDI.Finally,using the panel data of China's 27 provinces and autonomous regions of year 2006-2016,based on the Chenery “standard structure” model,two models of industrial structure optimization are constructed in this paper to conduct empirical tests.Considering the interaction between OFDI and industrial structure may cause endogenous problems,this paper selects tool variables and uses panel two-stage least squares estimation with time and provincial effect fixed to regress.The main conclusions of the paper are as follows:(1)In different periods of economic development,resource-seeking,market-seeking,technology-seeking and strategic asset-seeking OFDI can promote the optimization of China's industrial structure through industrial transfer,industrial relations and industrial competition.(2)China's OFDI can promote the optimization of industrial structure.The empirical results show that there is a significant positive correlation between China's OFDI and industrial advancement,and there is no significant positive correlation with the rationalization of the industrial structure.The performance of China's OFDI is low and the investment structure fails to achieve a good interaction with the domestic industrial structure.There is room for improvement in the quality and quantity of OFDI.(3)The optimization of China's industrial structure is also affected by the level of GDP,FDI and the level of technology.The improvement of the GDP and technological level can promote the heightening of the industrial structure,while the promotion role of FDI is not significant.The level of GDP,technology and FDI have no significant effect on the rationalization of the industrial structure.