The Study On The Influence Of OFDI To Domestic Industry Upgrading Under China's Belt&Road Initiative

The “Belt and Road”(B&R)initiative has been implemented for nearly five years since its introduction in 2013.At present,China's outflow foreign direct investment(OFDI)along B&R countries has a considerable scale.Taking 2017 as an example,OFDI along the “B&R” countries has accounted for 12% of China's total foreign direct investment(non-financial).In the "13th Five-Year Plan" proposal,China clearly proposed to build a new industrial system.According to the Plan,from 2015 to 2020,China's GDP growth rate will not be lower than 6.5%.In this case,it is not necessary to worry about the hard landing of Chinese economy,whereas the unreasonable industrial structure is the biggest problem.The optimization and upgrading of industrial structure will have a substantial impact on economic growth,technological innovation,income distribution and demand structure.OFDI is regarded as an important engine to promote industrial upgrading.With the advancement of the “B&R” initiative,OFDI is expected to experience a booming,as well as a new stage of industrial upgrading.This article first explains the meaning of the topic,research methods,research framework,etc.;under the academic background that foreign scholars are based on the perspective of developed countries and domestic scholars' research on the impact of OFDI on industrial structure in developing countries is still insufficient,this article will combine the two aspects to explore the impact of China's OFDI on the industrial structure in a specific policy context.The article analyzes the overall situation of China's industrial structure and OFDI,and analyzes the current situation of China's OFDI along the BRI strategy.It finds that China's foreign direct investment,although the scale of investment is expanding,still faces some problems: The proportion needs to be improved and the investment industry needs to be more diversified.At the same time,China's industrial structure is also facing challenges such as uneven regional development and mismatch with the employment structure.The fourth chapter analyzes the industrial structure and the theory of foreign direct investment,and analyzes how OFDI affects the development of different industries and how OFDI of different motivations affects the industrial structure.Using the provincial panel data from 2003 to 2017,the paper uses the “standard industry” model of Chanary to conduct regression analysis to study the relationship between OFDI and industrial upgrading in China,and consider the BRI initiative as a dummy variable to explore whether this initiative is also Industrial upgrading has a positive impact.Based on the results of empirical analysis,the paper analyzes the industrial structure upgrade brought by China's foreign investment under this strategy.On the whole,OFDI does have a positive impact on domestic industrial upgrading,but The influences in China's eastern,central and western regions are not the same.The industrial structure in the eastern region is more affected by OFDI;the “One Belt,One Road” initiative also promotes the optimization and development of industrial structure,and the implementation of this initiative optimizes the industrial structure of the western region.The impact is less significant than other regions;industrial upgrading and foreign direct investment require stronger research and innovation capabilities.Based on this,it also proposed policy recommendations to strengthen Chinese enterprises' direct foreign investment in countries along the Belt and Road,actively guide the development of industrial structure in the western region,and increase personnel training along the line.