Study On The Impact Of OFDI On Industrial Upgrading In Western China

Economic globalization has become the main trend of world economic development,and all countries have been integrated into the global economic development wave.OFDI has become an important engine of global economic development.With the introduction of China’s strategy of going global,foreign investment in the western region has continued to grow.In particular,the implementation of the Belt and Road Initiative in recent years has provided favorable conditions for enterprises in the western region to go global,and foreign direct investment in the western region has grown rapidly in recent years.But,with the development of the regional economy,its surplus industries are also in urgent need of transfer,and the entire industry is facing transformation and upgrading.It is also possible to learn from other countries about advanced technologies and development experiences.At present,many scholars at home and abroad have studied the impact of OFDI on industrial upgrading in many countries,and most studies have shown that OFDI has a positive effect on industrial upgrading,and this positive effect is particularly evident in developed countries.As the special place where China’s economy is backward,how will the OFDI in western China affect the industrial upgrading? This is of great significance to the western region which urgently needs to realize the transformation of foreign trade and industry.This paper studies the impact of foreign direct investment onindustrial upgrading in the western region.Firstly,the author combs the research results of domestic and foreign scholars on this topic.Secondly,according to different OFDI motives,OFDI is divided into four different types: resource seeking,market seeking,efficiency seeking and strategy seeking.Moreover,it analyzes the different characteristics of different investment motives and the different paths that affect industrial upgrading.Thirdly,this paper expounds the current situation of foreign direct investment and industrial structure in the western region,starting from two aspects,the whole and the specific provinces and cities,and discusses the impact of foreign direct investment on industrial upgrading in the western region through empirical measurement analysis.When constructing the empirical evidence,it draws on the model of Qiannali,and according to the development situation in the western region,it also introduces two factors that will have a greater impact on industrial upgrading,namely R&D costs and fixed asset investment.The empirical results show that the impact of the overall OFDI in the western region on the industrial upgrading in the western region is not obvious.This is mainly due to the relatively small scale of OFDI in the western region.In addition,enterprises in the region mainly focus on the wholesale and retail trade,leasing and business services,which are the low-end factors of production.The impact of OFDI in these industries on industrial upgrading in the western region is also relatively small.High-techhigh-end industries have little investment,and even more than half of the provinces and cities have no investment at all.In addition to the empirical analysis of the overall situation in the western region,the paper also studies the influence of OFDI of various provinces and cities in the western region on industrial upgrading on the basis of excluding the two indicators of R&D costs and fixed asset investment.The results showed that the impact of OFDI in more than half of provinces and cities on industrial upgrading was not obvious.Finally,on the basis of the research results,some suggestions are put forward on how to effectively use regional OFDI to promote the upgrading of industrial structure.