Research On The Relationship Between China's OFDI And Industrial Structure Upgrading Under The Background Of "Maritime Silk Road" In 21st Century

Driven by the trend of economic globalization,China's economy has begun to flourish,and the outward foreign direct investment activities of multinational corporations are more frequent,and the scope of investment is all over the world.But the development of the economy is bound to be accompanied by the emergence of problems.The economy of high speed and continuous development has led to the change of China's industrial structure,and it has also caused a serious problem of "overcapacity" in industry..Based on the 21 st century "Maritime Silk Road" initiative,this paper studies the relationship between China's direct investment in countries along the route and the upgrading of China's industrial structure as the research object,theoretical analysis and empirical analysis are combined to examine whether China's OFDI can promote the upgrading of China's industrial structure.On the basis of previous research,this paper combs the related literature of the relationship between FDI and industrial structure upgrading,and summarizes the general impact mechanism of the former on the latter on the basis of investment theories,by modifying the stochastic frontier gravity model and VAR model to construct the empirical model of OFDI and industrial structure optimization level effect evaluation.In addition,this article refers to the closeness of economic and trade cooperation between China and the countries along the “Maritime Silk Road”,according to the geographic location and the closeness of economic ties,the countries along the route are divided into four categories: ASEAN countries,South Asian countries,Gulf countries,and African coastal countries,so as to make the empirical results more reasonable and closer to reality.This paper first calculates the investment potential of China in the countries along the "Maritime Silk Road".Based on the investment data of China in the region from 2004 to 2015,the investment inefficiency model and the stochastic frontier gravity model were revised through the introduction of economic cooperation strategies,market acceptance,institutional similarity,energy production,corruption control,and otherindicators,and analyzed the non-efficiency factors and investment potentials that influence China's direct investment in the region.The empirical results show that:Among the investment non-efficiency factors,"Maritime Silk Road" strategy and economic cooperation strategy have no significant effect on the non-efficiency of investment,the factors such as market acceptance and institutional similarity have a negative effect on investment non-efficiency,and the factors such as energy production and corruption control play a significant role.In terms of investment potential,China has a large investment potential in the "Maritime Silk Road" countries,and there are differences between different regions.Among them,the ASEAN countries have minimum investment potential,the gulf states have the largest investment potential.Subsequently,based on the above conclusions,this article is further based on China's direct investment data and industrial structure data for countries along the“Maritime Silk Road”between 2004 and 2015,through the construction of industrial structure upgrading indicators,using VAR model to study the relationship between China's direct investment in the region and industrial structure upgrading of china.The results show that:under the impetus of "Maritime Silk Road",China's OFDI in the region has a positive effect on the upgrading of China's industrial structure,but the upgrading of industrial structure can not promote China's OFDI in the region.Further found by OLS regression,China's OFDI stock increase by 1% in the region,which will boost the industrial structure upgrade index by 0.009%.Divided into three industries,the stock of OFDI increase by 1%,which will reduce the proportion of the first industry,second industry by 0.073% and 0.02% respectively,and increase the proportion of the third industry by 0.039%.The above results show that China's OFDI in the countries along the "Maritime Silk Road" is of great significance to promoting the development of China's industry.At the end of 2013,General Secretary Xi proposed the 21 st Century “Maritime Silk Road” initiative,which showed that China has realized the great development potential of countries along the region.The “Maritime Silk Road” initiative has focused Chinese investors' eyes on the region and further explored the investment potential of countries along the region.There is a driving force for China,which is currently undergoing economic transition.It can be seen that in the future,the Chinese government will unwaveringly adhere to the "Maritime Silk Road" initiative and it will have positive and practical significance.Finally,on the basis of theoretical analysis and empirical analysis,this article summarizes the research done and gives a perspective.