A Research On The Effects Of Outward Foreign Direct Investment On The Industrial Structure Upgrading In China

With the spring breeze of reform and opening up,China's foreign direct investment has ushered in new development space and opportunities.From 2005 to 2015,the level of China's foreign direct investment has been rising steadily.In 2016,China's foreign direct investment level has surpassed Japan's in the second place and become the second largest foreign direct investment country after the United States.In the past three years,although the total amount of global OFDI Outflow has shrunk and declined continuously,the operation of China's economy is still progressing steadily,and the level of opening-up is constantly improving.Relevant departments have also actively guided some qualified enterprises to "go out",and the structure and quality of China's foreign investment has been further optimized.In 2018,China's foreign direct investment flow reached $143.04 billion,ranking the second in the world.At present,China is experiencing a period of strategic transformation from "introducing" to "going out",seeking the path of upgrading the domestic industrial structure.With the steady progress of China's "going global" strategy,the stock of China's foreign direct investment has also increased rapidly.Therefore,how to use the opportunity of "going out" to promote the upgrading of China's industrial structure is an important practical problem in the period of China's economic transformation and upgrading.In order to make China's economy more stable and healthy,it is of great practical significance to study how to expand the impact of China's foreign direct investment on the upgrading of domestic industrial structure..First of all,based on the research of many scholars at home and abroad,this paper clarifies the concepts and theories of OFDI and industrial structure upgrading.Secondly,through a series of analysis on the current situation of China's foreign direct investment and industrial structure upgrading,in order to find out some problems encountered and existing in the development process more effectively and reasonably,and in view of these specific problems,take relevant reasonable measures to better improve the effectiveness of foreign direct investment on China's industrial structure upgrading.Based on this,this paper will study the impact mechanism,mechanism and degree of OFDI on industrial structure upgrading from the perspective of OFDI.This study is not only in line with China's current national conditions,but also can further improve the research on the impact of OFDI on the upgrading of industrial structure.In the process of research,it mainly starts from the following four aspects:First,based on the existing research literature,this paper clarifies the definition and theoretical basis of related concepts.First of all,it defines the concept of OFDI and industrial structure upgrading and relevant theoretical research,then analyzes the evolution process,current situation and existing problems of OFDI and industrial structure upgrading,and further combs the relationship between them,so as to provide effective path reference and policy suggestions for further optimization and upgrading of industrial structure.Second,the full text selects the relevant data of 30 provinces and autonomous regions(Tibet data is lack,so it is excluded)in 2004-2018 to measure China's foreign direct investment,industrial structure upgrading and other relevant variables.The data and test results show that China's foreign direct investment stock and flow related scale continue to expand,and the industrial structure development stage steadily rises And FDI has a positive impact on the upgrading of industrial structure.Thirdly,this paper discusses the influence mechanism of China's OFDI on the upgrading of industrial structure from the theoretical level,and analyzes the influence of China's OFDI on the upgrading of industrial structure from the different motives of industrial transfer effect,reverse technology spillover effect,industrial association effect,resource seeking type,market seeking type,efficiency seeking type and strategic asset seeking type It is believed that these three different effects and four different motivations of OFDI can promote the optimization and upgrading of China's industrial structure.Fourth,this paper studies the impact of China's foreign direct investment on the upgrading of industrial structure through empirical analysis,using panel data of 30 provinces and autonomous regions in 2004-2018.Among them,the upgrading of industrial structure is measured by rationalization of industrial structure and constructed by Theil index.The main explanatory variable of this paper is foreign direct investment,which is expressed by the ratio of the stock of non-financial foreign direct investment in each province to the GDP of each province.The control variables are the level of economic development,the degree of marketization,technological progress,the proportion of exports and fiscal decentralization.The empirical results show that China's foreign direct investment can promote the upgrading of industrial structure Use.The results of the study are still valid.Finally,on the basis of theoretical research,impact mechanism analysis and empirical test,the paper concludes the relationship between OFDI and industrial structure upgrading,and puts forward effective and feasible policy recommendations from the perspective of how OFDI effectively promotes industrial structure upgrading.