Empirical Analysis On The Effect Of OFDI And IFDI On The Opitimization Of China's Industrial Strcuture

All countries in the world want to achieve global economic integration as soon as possible.Countries around the world conduct frequent economic transactions.International direct investment has become an important method for industrial transfer of the world.Regardless of the country of investment or investment,international direct investment will affect the adjustment of the industrial structure of each country.Since China began to implement the reform and opening up policy in 1978,the proportion of China's IFDI and OFDI in the world continues to increase.China has become a big country in international direct investment.China has entered an important stage of economic restructuring.The upgrading of industrial structure is the key to adjusting the economic structure.We need to conduct in-depth studies on the relationship between industrial structure upgrading and two-way direct investment and,impact of two-way direct investment in different economic regions on the upgrading of industrial structure.Because these help us make better use of IFDI and OFDI,and they have implications for promoting the upgrading of industrial structure,actively attracting foreign direct investment,and increasing foreign direct investment.The research method of this paper is theoretical analysis combined with empirical research.First,we will sort out the theoretical basis for domestic and international twoway direct investment and industrial structure upgrading,and the related literature on the two-way direct investment and the upgrading of industrial structure.Second,build an impact mechanism of bidirectional direct upgrade of industrial structure.This article conducts empirical research on the basis of theoretical analysis.The empirical study of this paper is mainly divided into two parts.The first part examines China's two-way direct investment flow data from 1982 to 2016.Establish a time series model based on Chenery's classic model.This model is used to study the different effects of two-way FDI on the upgrading of industrial structure in the short and long term.The results show,OFDI has a long-term role in promoting the rationalization of industrial structure and the heightening of industrial structure.and this promotion has risen with time.In the short term,the outflow of domestic capital will lead to the uneven development of domestic industries.This situation has to some extent hindered the upgrading of the domestic industrial structure.In the long term,IFDI's role in promoting the heightening of industrial structure and the rationalization of industrial structure is on the rise.In the short term,IFDI cannot significantly promote the rationalization and heightening of China's industrial structure.The second part deals with the panel data of 26 provinces and cities in China from 2003 to 2016.This part uses a fixed effect model to empirically analyze the relationship between China's two-way FDI and industrial upgrading.The purpose of doing so is to study the results of different impacts of two-way direct investment on upgrading industrial structure in different economic regions.The results show,the conclusions of the national level analysis are consistent with the conclusions of the time series analysis.We have obtained empirical test results that can be mutually verified.At the regional level,the impact of the two-way FDI on the upgrading of the industrial structure varies with different economic regions.