The Effects Of Differently Motivated Outward Foreign Direct Investment On China's Domestic Investment

By the end of 2017,China's OFDI stocks reached US$180.9 billion,ranking second in the world.How does China's large-scale OFDI affect domestic investment? This is an important issue related to China's industrial upgrading and economic development.At present,the research conclusions on the impact of OFDI on domestic investment are inconsistent.Both theoretical and empirical studies have two distinct views of “crowding in effect” and “crowding out effect”.In addition,theoretical studies have shown that the effect of OFDI on domestic investment mainly depends on the motivation of foreign investment.Therefore,taking investment motives as the entry point,conducting in-depth research on the impact of OFDI on domestic investment from both qualitative and quantitative perspectives helps us to objectively understand the role of OFDI in domestic investment development from both positive and negative aspects.The relative size provides a reference for the macro management of OFDI.Therefore,the topic selection has important theoretical and practical significance.The focus of this paper is on the differences in the impact of OFDI with different motives on domestic investment.Based on the main purpose of the research,this paper uses a combination of theoretical and empirical analysis to conduct research.In addition to the introduction and conclusions and recommendations,the full text is divided into three chapters.The introduction mainly deals with the significance of the topic,the research status at home and abroad,the methods and contents of the research,as well as the innovation and deficiencies.The first chapter analyzes the theoretical perspectives of the representative international direct investment theory on OFDI's influence on domestic investment,and analyzes the mechanism of OFDI with different motives affecting domestic investment.The second chapter analyzes the main characteristics of China's OFDI from four aspects: total quantity and speed of development,location distribution characteristics,main body distribution characteristics and motivation distribution characteristics.Then it analyzes China's domestic investment development mainly from two aspects: investment scale and structure.status quo.The third chapter selects the panel data of 30 provinces in China from 2003 to 2015,and uses the systematic GMM estimator to measure the annual OFDI scale of each province by the number of OFDI in each province,and examines the overall situation of the impact of OFDI on domestic investment.Then,using the specific enterprise OFDI motivation identification method,the OFDI is classified according to the motivation of each province in each year,and the systematic GMM estimator is also used to test the impact of different motivation OFDI on domestic investment.Based on the conclusions of the full-text research,the conclusions and recommendations put forward some policy recommendations.Theoretical and empirical studies have found that:(1)China's OFDI has promoted domestic investment.This is related to China's high savings,sufficient foreign exchange reserves and overseas expansion aimed at promoting domestic exports.(2)China's direct investment in different types of host countries has different effects on domestic investment.Among them,investment in developed countries will “squeeze out” domestic investment,and investment in non-developed countries can “crowd into” domestic investment.(3)Different motivations OFDI has different effects on domestic investment.Resource-seeking and market-seeking OFDI promoted domestic investment,and strategic asset-seeking OFDI “squeezed out” domestic investment.(4)The impact of OFDI on the same investment motives on domestic investment is also partly different due to the choice of investment location.Resource-seeking OFDI investment in non-developed countries can promote domestic investment,but investment in developed countries has no significant promotion;market-seeking OFDI investment in developed countries or non-developed countries can effectively boost domestic investment growth;strategic asset seeking OFDI investment in developed countries will “squeeze out” domestic investment,and the “crowding out” effect of investing in non-developed countries is not significant.