Research On The Influence Of China's Foreign Direct Investment On Industrial Structure

For a long time,China has always adhered to a proactive opening-up strategy,Take the initiative to connect with international practices,We will create an environment of fair competition,constantly innovate ways of foreign investment,and optimize the structure of foreign investment,Steadily advancing investment in one belt,one road country.As a result,China's OFDI stock has grown rapidly.As early as 2003,the stock size of China's outward foreign direct investment was only US $33.2 billion,but by 2018,the stock size of China's outward foreign direct investment reached US $1982.27 billion.At present,the proportion of the first industry in our country is declining,the proportion of the second industry is rising first and then declining,and the proportion of the third industry is increasing year by year.In general,the industrial structure of our country has been optimized and upgraded.From a macro point of view,OFDI can solve the problem of overcapacity in some industries in China,release idle funds for investment in other advantageous industries,and from a micro point of view,transnational investment of Chinese enterprises can obtain scarce natural resources abroad,introduce advanced technology abroad,obtain excellent management experience and broaden marketing channels.These functions of OFDI are as follows: Theoretically speaking,it can promote the upgrading of industrial structure.In recent years,China's industrial structure as a whole has been upgraded,so how much of it is caused by foreign direct investment? This paper analyzes the scale of OFDI in different regions of China by using the hersheman hefindar index and diversification index.It is found that there are great differences in the scale of OFDI in different regions.Will OFDI of different scales have different effects on the upgrading of industrial structure in different regions of China?This paper will be described through the following five parts: the first part is the introduction of this article.First of all,this part analyzes the complex domestic and international economic environment,and considers that the industrial structure and outward foreign direct investment are both hot topics at present,so it has strong theoretical and practical significance to study these two hot topics.Then,the related literatures about "outward foreign direct investment","upgrading of industrial structure" and "outward foreign direct investment affecting industrial structure" are sorted out,and the existing literatures are reviewed.Then it introduces the four research methods used in this paper,and points out that the disadvantage of this paper is to introduce more control variables into the model.The second part of this paper analyzes the motivation of Chinese enterprises' foreign investment by analyzing the cases of Chinese micro enterprises' foreign investment,and then extends to the theoretical level to analyze the transmission mechanism of China's outward foreign direct investment affecting industrial structure.The third part is the current situation of this article.This paper analyzes the current situation of China's outward foreign direct investment in terms of the overall scale,country distribution and industry distribution of foreign direct investment,analyzes the current situation of industrial structure from the proportion of three industries and the deviation degree of industrial structure,and compares the current situation of foreign direct investment and industrial structure in each region.The fourth part is the empirical part of this paper.This part uses stata16 software to make empirical analysis,and uses panel model to empirically test the impact of OFDI on industrial structure in the whole country,the eastern region,the central region and the western region.The research results show that OFDI promotes the upgrading of industrial structure in China from the national level,while the regional empirical results show that OFDI in the eastern region and the central region promotes the upgrading of industrial structure Indirect investment has significantly promoted the upgrading of industrial structure,and the role of outewrd foreign direct investment in the central region is slightly higher than that in the eastern region;while the role of outward foreign direct investment in the western region is not statistically significant.The fifth part is the conclusion and policy recommendations.This part is a summary of the full text,and provides policy recommendations from the development of China's outward foreign direct investment and industrial structure.