Analysis Of The Mediating Effect Of OFDI On China's Output

Since the reform and opening up,China has been continuously integrated into the world's unified economic system,and has become increasingly closely linked with other countries in the world.China's economic boom since the reform and opening up is partly attributed to the outflow of foreign trade products and the inflow of foreign capital.In this kind of interaction between trade and capital,China has developed in an all-round way.However,with the continuous development of foreign capital inflows,the growth of China's foreign direct investment also shows a vigorous momentum,and the growth rate is much higher than that of foreign capital inflows.In 2014,foreign direct investment successfully surpassed foreign capital inflows,and China became a net outflow country of FDI.Judging from the domestic situation,China's economic development has entered a new normal,economic growth has declined and downward pressure is continuing.China is gradually shifting its growth power from investment-driven growth to innovation-driven development.It has begun to pay attention to the quality of economic development and environmental issues,adjust the industrial structure,and the downward pressure of economic growth is enormous.In addition,in recent years,the state has been increasing the intensity of deleveraging,which makes domestic liquidity tight,financing difficult,expensive become a common phenomenon,capital is still the focus of scarce elements.So will such a huge amount of foreign direct investment restrict China's output growth?How does FDI affect the output effect of Chinese enterprises?In order to solve the above problems,this paper analyses the mechanism of FDI affecting the level of home country's output.Firstly,this paper elaborates the research background and significance of home-country effects of outward FDI based on the reality of our country,and explains the marginal innovation made on the basis of predecessors.On this basis,this paper combs the relevant research at home and abroad,and further summarizes,relying on previous research results,preliminary judgment of the impact of FDI on the home country.Secondly,by constructing a mathematical model,using basic economic theory as the initial condition and combining mathematical model with economic theory,this paper gives a theoretical basis for the home country's output effect of outward FDI.Through analysis,it is found that outward FDI promotes reverse technology spillover to the home country and home country's output effect respectively.The upgrading of industrial structure and the export of the home country will promote the improvement of output level.In addition,through further in-depth analysis,it is found that reverse spillover technology will promote the upgrading of home country's industrial structure and the increase of export volume,and the upgrading of industrial structure will further promote the increase of export volume.To sum up,this paper analyses the multiple intermediary mechanism from FDI to output level.Finally,on the basis of theoretical analysis,using the provincial panel data of China from 2003 to 2017,based on the dynamic panel data model,using the system generalized moment estimation as the estimation method,and using the multiple mediation effect model as the support,this paper constructs the regression equation group.It is concluded that FDI significantly promotes technology reverse spillover.Industrial structure upgrading and export;technology reverse spillover significantly promoted industrial structure upgrading and export;industrial structure upgrading significantly promoted export;technology reverse spillover,industrial structure upgrading and export all significantly promoted output level.Through verification,we draw the conclusion that the intermediary effect of FDI through technology reverse spillover,industrial structure upgrading and export exists.In addition,this paper also verifies that there is no other path for the impact of FDI on output except the intermediary effect mentioned in this paper.Finally,through the above-mentioned theory and empirical results to be summarized and analyzed,and through the theory to give the corresponding policy recommendations,play a guiding role in practice.