Research On The Impact Of Outward Foreign Direct Investment On China's Resource Allocation Efficiency

In recent years,under the vigorous promotion of China's "going out" policy and the"One Belt,One Road" initiative,China's outward foreign direct investment has developed rapidly.In the context of the large volume of outward foreign direct investment flows and stocks,the effectiveness of it is a matter of great concern.Under this background,this paper studies the impact and mechanism of China's outward foreign direct investment on resource allocation efficiency.It is of great theoretical and practical significance to conduct in-depth research around this topic.This paper firstly sorts out the theory of outward foreign direct investment and resource allocation efficiency,and systematically lists the research of scholars at home and abroad.From the existing research,scholars noticed the problem of resource allocation efficiency in the process of economic development,and researched the factors affecting the resource allocation efficiency,but the existing studies pays more attention to the factors within a country.There are few studies on the possible impact of OFDI on resource allocation efficiency.This paper integrates outward foreign direct investment and resource allocation efficiency into an analytical framework,it has enriched the research on the effect of OFDI on the home country,It also introduces a new idea for how to improve the resource allocation efficiency of China.This paper estimates the resource allocation efficiency of each province in China from 2003 to 2017,and builds a dynamic panel model based on this,and empirically tests the impact of foreign direct investment on China's resource allocation efficiency.In this paper,the ratio of actual output to the most effective output is used to measure the resource allocation efficiency.The larger the ratio,the higher the resource allocation efficiency.During the inspection period,the resource allocation efficiency of most provinces remained stable,and the trend of improvement was relatively slow.The resource allocation efficiency of Jiangsu,Anhui and other provinces even showed a downward trend.To a certain extent,China's resource allocation efficiency has not improved significantly.In terms of regions,the resource allocation efficiency of the eastern and central regions is higher than that of the western regions.The empirical results show that OFDI has a significantly positive impact on resource allocation efficiency.For the mediation effect test,factor mobility and industrial structure play a mediating role in resource allocation efficiency,while market competition degree does not pass the significant test.The results of the robustness test using different metrics show that the relationship between outward foreign direct investment and resource allocation efficiency is still valid.Factor mobility plays a mediating role in labor allocation efficiency,but the impact on capital allocation efficiency is not significant.The industrial structure plays a mediating role in the capital and labor allocation efficiency.Outward foreign direct investment can improve capital allocation efficiency by exacerbating the degree of market competition,but the impact of market competition degree on labor allocation efficiency is not significant.The inspiration of the conclusion of this paper is that outward foreign direct investment enables enterprises to participate in the international division,which contributes to the improvement of China's resource allocation efficiency.The "One Belt,One Road" policy has created favorable conditions for the outward foreign direct investment of Chinese companies.Relevant government departments should take various measures to encourage competent enterprises to participate in the international division through outward foreign direct investment,and should create a good internal environment for them.