Enterprise OFDI And Technology Upgrading Of Export Products

The Global Value Chain(GVC)is one of the important characteristics of the rapid development of globalization.As a big developing country,China actively participates in it with sufficient labor resources and cheap land advantages.However,it is downstream of the smile curve.The relevant facts cannot be changed.Although the scale of China's exports continues to hit a record high,the technological content of export products is relatively low,and the benefits of exports are far less than those of Europe and the United States.In addition,with the disappearance of demographic dividends,resource shortages,and trade protectionism,how to optimize the industrial structure,transform export methods,and realize innovation-driven development have become important issues that need to be resolved under the New Normal.Similar to foreign trade,Outward Foreign Direct Investment(OFDI)is also a way for a country to participate in the international division of labor and enhance its competitiveness.China's foreign direct investment scale ranks among the top in the world,and has an important impact on both the home country and the host country.How to give full play to the adverse technological spillover effects of foreign direct investment,promote domestic product upgrades,and improve the export structure has become an important topic of current research.This paper analyzes the effect of OFDI on the export sophistication by sorting out the relevant literature on export sophistication and foreign direct investment,and then derives differently the effect of OFDI on export sophistication in investment motives and industries.At the same time,it describes the current status of China's export technology complexity and the outward foreign direct investment,and uses the company's micro-data to conduct empirical analysis,and draws the following main conclusions.The results of our analyses show that OFDI from Chinese companies has a positive effect to export sophistication,which is to say that OFDI can promote the export sophistication,but there are still differences in industry.Further,there is an analysis for the different sub-sectors within the export sophistication of export enterprises,investment companies to a different host,and different investment motives of companies.The results show that with the upgrading of the export sophistication,the industries of textile manufacturing and resources processing have the characteristics of the first increase and then decline on the effect of export sophistication,and the industries of mechanical and electronic show an upward trend.Investing in developing countries will be more conducive to export sophistication in the industries of textile manufacturing and resources processing,and the industries of mechanical electronic trend to invest in developed countries.Textile industry is dominated by market seeking,and resources processing and mechanical and electronic to seek resources and technical.Finally,by summarizing the above research,during the process of direct foreign investment,we should pay more attention to the technical level of export products of enterprises,and combine different investment motives and different industries to formulate differentiated foreign direct investment policies.