Study On The Impact Of FDI On The Transformation And Upgrading Of Manufacturing Industry In The Yangtze River Economic Belt

Regional economy has always been one of the important engines of economic development.With the new stage of China's regional development strategy,the Yangtze river economic belt,which spans the three major regions in east,west and east of China and covers 11 provinces and cities,has the largest comprehensive strength and the largest strategic support.But at present,the Yangtze river economic belt of ecological conditions are grim,the industrial transformation and upgrading of a difficult task to be solved,such as the problems and difficulties,in order to solve the above difficulties,targeted,planned in 2016 in the Yangtze river economic belt development plan outline(hereinafter referred to as the "plan"),according to the current situation of the Yangtze river economic belt,starting from the top design,clear it will walk the road of "ecological priority and green development",after the "outline",in order to further refine and quantitative targets,effective protection and improving ecological environment of the Yangtze river,the national development and reform commission,the ministry,jointly issued by the ministry of water resources,the planning of ecological environment protection in the Yangtze river economic belt,Thus it can be seen that the government adheres to and attaches importance to the concept of ecological priority in the economic development of the Yangtze river economic belt.However,it is an unsustainable process to talk about environment without economy,so green development becomes the optimal solution of economic and environmental problems.In the development of the Yangtze river economic belt,FDI inflows is an important driving force,in terms of manufacturing,the country more than 50% of the FDI inflows in the Yangtze river economic belt to promote its development,in addition,the Yangtze river economic belt of transformation and upgrading,especially the manufacturing industry shift by a transformation and upgrading as well as the development of the important factors,and the international industry transfer experience has shown that the host country to undertake industrial transfer efficiency and the quality of FDI itself.Therefore,it has become an urgent issue to explore the heterogeneous influence of FDI on industrial upgrading and accelerate the green development of the Yangtze river economic belt by combining the two driving forces of FDI and industrial upgrading.FDI has a long history of discussion on industrial upgrading,which can be generally divided into three views: first,FDI helps promote industrial upgrading: the capital,advanced technology and management experience brought by the introduction of FDI will bring technology spillover effects within and between industries through various channels,so as to promote industrial upgrading;Secondly,FDI has inhibiting effect on industrial upgrading.The entry of foreign capital has crowding out effect on domestic capital and technology research and development,and the excessive dependence on FDI leads to the formation of structure locking effect,which makes the factor structure shift to the low end,thus inhibiting the industrial upgrading.Third,FDI has no significant impact on industrial upgrading: due to the difficulty of application and promotion of core technologies,the spillover of FDI technologies may not be obvious,so the impact on host country industries is not significant.It can be seen that the above scholars' studies on the effect of FDI on industrial upgrading have different results,but their common point is to focus on the analysis of the impact of FDI quantity on industrial upgrading,ignoring the quality of FDI itself.In fact,the spillover effect of foreign quality,such as correlation effect and demonstration-model effect,plays a very important role in industrial upgrading.Based on manufacturing industry as the research object,this paper reference relevant literature,under the construction of index system of measuring the quality of FDI,the use of the Yangtze river economic belt in 2002-2016 panel data,established considering heteroscedasticity,cross section,the relevant comprehensive FGLS model,thus the analysis of the effect of FDI quantity and quality of manufacturing direction and degree of action,finally come to the conclusion.The research finds that: firstly,for the quality of FDI,the proportion of foreign capital export and localization is relatively high.Secondly,from the perspective of trend,FDI quality has the same change trend with the transformation and upgrading of manufacturing industry,while FDI quantity has the opposite trend.Finally,the effect of the quantity and quality of FDI on the transformation and upgrading of manufacturing industry is heterogeneous.Specifically,the full sample estimation results of the Yangtze river economic belt show that the quality of FDI promotes the transformation and upgrading of the manufacturing industry,while the quantity of FDI inhibits it.Further,when estimating the upper,middle and lower reaches of the Yangtze river economic belt,the results show that,for the upstream regions,FDI quality has an inhibitory effect on the transformation and upgrading of manufacturing industry,but not significant,while FDI quantity has a significant inhibitory effect.For midstream regions,both the quantity and quality of FDI play a promoting role,but only the coefficient of FDI quality is significant.For downstream regions,FDI quality has a significant promoting effect,while FDI quantity has a significant inhibiting effect.Based on the above conclusions,relevant Suggestions are put forward to actively guide the flow of FDI,improve the quality of attracting FDI,enhance the spillover capacity of FDI,optimize the investment environment and strengthen regional cooperation,so as to accelerate the green development of provinces and cities in the Yangtze river economic belt by selectively introducing FDI to promote the transformation and upgrading of their manufacturing industries.