Research On The Interaction Between China's Outward Foreign Direct Investment And The Upgrading Of Domestic Industrial Structure

Outward foreign direct investment(OFDI)and upgrading of home country industrial structure have always been a hot topic in the field of international investment.Since the implementation of the "going global" strategy in 2002,China's OFDI has developed rapidly and achieved remarkable achievements.By the end of2017,China's OFDI stock had reached 1809.04 billion US dollars,60.5 times the2002 stock;the investment was distributed in 189 countries(regions)around the world,accounting for 80.8% of the total number of countries(regions);the investment industry has been expanding and now covered all sectors of the national economy.China has become a real OFDI power.At the same time,China's economy has entered a new normal economy under the influence of global economic fluctuation and cyclical economic adjustment.Problems such as bottlenecks in production technology and inefficient allocation of factors are constantly exposed,deepening supply-side structural reform and promoting the upgrading of industrial structure have become the primary objectives of China's economic reform.Based on the above realistic background,how to guide enterprises to invest abroad according to the needs of upgrading domestic industrial structure,and how to formulate reasonable policies to promote the positive interaction between foreign investment and upgrading of domestic industrial structure are all very worthy of discussion.Therefore,this paper has important theoretical and practical significance to study the interaction between China's OFDI and the upgrading of domestic industrial structure.On the basis of existing research,this paper combines theoretical analysis with empirical analysis.Firstly,based on the two-way influence mechanism of the interaction between OFDI and the upgrading of domestic industrial structure,the qualitative analysis of mechanism description is carried out.Then,the quantitative analysis of the interaction between OFDI and the upgrading of domestic industrial structure is carried out by using the relevant data at the provincial level.Finally,according to the conclusions of theoretical and empirical analysis,the corresponding policy recommendations are put forward.The research content of the full text is based on this idea,and the specific structure is arranged as follows:The first part is introduction.This part introduces the background and significance of this study,reviews and briefly evaluates the relevant research results at home and abroad,then clarifies the research methods and contents,and explains theinnovation and shortcomings of this paper.The second part is the theoretical analysis of the interaction mechanism between OFDI and upgrading of home-country industrial structure.This part combs the theories of international investment and industrial economics on the relationship between foreign direct investment and home-country industrial structure,and on this basis,clarifies the interaction mechanism between OFDI and home-country industrial structure upgrading.The third part is the analysis of the current situation of China's outward foreign direct investment and industrial structure development.This part analyses the relationship between OFDI and the development of domestic industrial structure from the aspects of development process and scale status,and makes a brief summary of their characteristics.The fourth part is an empirical study on the interactive relationship between China's outward direct investment and industrial structure upgrading.In this part,Panel Vector Auto Regression model(PVAR)and Panel Smoothing Transfer Regression model(PSTR)are constructed to test the interaction between OFDI and industrial structure upgrading,and give a reasonable explanation for the estimated results of the model.The fifth part,conclusions and policy recommendations.This section first summarizes the basic conclusions of the full text of the study,and according to the conclusions of the study put forward practical policy recommendations.The author believes that China should further expand its opening to the outside world,speed up the process of globalization of domestic industry with high-quality OFDI,promote the optimization and upgrading of industrial structure,further deepen the industrial restructuring,focus on promoting the development of tertiary industry,achieve a larger-scale and higher-quality "go-out",and ultimately make OFDI and the development of domestic industries form a benign interaction,mutual promotion and coordinated development.The main innovation of this paper lies in the innovation of research perspective.Previous literature mostly focus on exploring the one-way impact of OFDI on the upgrading of home country's industrial structure.This paper focuses on the two-way mechanism of OFDI and industrial structure upgrading,and emphatically investigates the impact of less attention by predecessors on the upgrading of industrial structure of investment countries on OFDI,which is innovative to a certain extent.There are also some shortcomings in this paper.There are some deficiencies in theoretical basis and research depth,which still need to be further explored.