Research On The Impact Of OFDI On The Upgrading Of Industrial Structure Of China's Manufacturing Industry

As the accumulation of China's industrial capital and the expansion of opening scope in recent years,the strong development of China's OFDI(Outward foreign Direct Investment)has resulted in the substantial growth of investment volume,ranking the top 3 in the world.The types of investment industries has gradually move to the high end of global value chain.The acquisition has elevated with more obvious purpose.With the development of China's OFDI,the influence of which to the relevant industry has also become prominent.Therefore,the focus of the academic cycle has shift from foreign investment inducement to the reverse effect of OFDI to the industrial development and upgrading.In term of manufacturing,since the outbreak of 2008 financial crisis,the world economy has gone through deep self-adjustment and repair.More and more countries including developed countries and emerging markets realized the importance of real economy especially the manufacturing industry.As a result,the campaign of “manufacturing backflow” and “reindustrialization” has been initiated and promoted to seize the highland of industrial and economic development.Therefore,how to retain and expand the original global market share and improve the productivity and quality in order to remain invincible in the complicated international economics and politics situation and the changing risks of trade and investment has become an critical issue for China's manufacturing to survive and flourish in the trend of globalization.For this matter,accelerating the process of structure upgrading and optimization to foster the core competitive advantages of manufacturing enterprises has become a consensus in the face of such problems.The purpose of this research is to explore the path of best promoting the OFDI's positive effect to the real economy through examining the influence of OFDI to the upgrading of industrial structure of China's manufacturing.Using OFDI and China's manufacturing industrial structure as research object,the article can be divided into 5 parts.Firstly,the combing of international investment and upgrading of industrial structure theory and the analysis of China's OFDI influence mechanism to the upgrading of manufacturing theoretically illustrate the necessities and risks for manufacturing to use OFDI.The present situation of international investment and China's OFDI along with manufacturing development are introduced in the following part.Then,using 2003-2016 OFDI stock data of different provinces to build sys-dynamic panel models,the empirical study is carried out.Different indices are set to examine the effects in five aspects.Regional comparison of Beijing-Tianjin-Hubei region and Yangtze River Delta region is also carried out by building the same models to deepen the understanding of the OFDI's different effect under distinct external environment.Countermeasures and suggestions in the views of government and enterprises are also proposed in the next chapter.