The Impact Of OFDI Restriction On Trade Structure Optimization

Under the background of the rising of international investment protectionism,the host country restricts our country’s OFDI to protect the development of its own enterprises,which hinders our country’s imitation and study of its advanced technology,but our country technology progress promoted our country enterprise independent research and development ability promotion,then enhances our country product quality,the optimization trade structure.Therefore,it is of great theoretical and practical significance to explore the impact of OFDI restriction on home country’s trade structure optimization.Based on the theoretical analysis,this paper systematically discusses the developed host country may face the risk and threat that their advanced technology may be overstepped.So they restrict the investment of home country.This hinders the exchange of information between home countries through host country partners,competitors and consumers and makes it difficult to acquire knowledge and professional skills that are not available in the domestic market,this hinders the innovation channels of home country enterprises,makes home country lack of technical support,slows down the improvement of the quality and level of the products of home country enterprises,and eventually deteriorates the trade structure of home country.In order to further investigate the impact of the host country’s investment restrictions on the trade structure of the home country affected by what factors,this paper examines the mechanism through the moderating effect of technological progress,and finds that with the home country’s domestic technological progress,on the one hand,home countries have increased their investment in research and development of their own technologies,enabling enterprises to produce more sophisticated,high-quality and low-cost products,thus improving their trade structure;on the other hand,technological progress has increased the productivity of enterprises,lower production costs and promote Total factor productivity.This indicates that the development of the country’s ability of independent innovation which is conducive to the improvement of product quality,and ultimately contribute to the adjustment and upgrading of the country’s trade structure.Therefore,the problem of restraining the optimization of the trade structure of the home country due to the restriction of the developed host country to the home country’s investment is eased.Based on the theoretical analysis,this paper selects 38 OECD countries from 2010 to 2018 cross-border panel data,using panel fixed effect empirical test.By analyzing the direct effect of OFDI restriction on trade structure optimization and the indirect effect of technological progress as a moderating effect on trade structure optimization,the relationship between OFDI restriction and trade structure optimization is obtained.The results of sub-sample regression show that there is heterogeneity in the impact of OFDI restriction on trade structure optimization under different levels of openness,whether we are English-spoken countries,the size of institutional distance and whether we sign bilateral investment agreements with our country.Based on the above analysis,our government should perfect the information service mechanism of the relevant departments to the investment policy of OECD countries,this includes the establishment of an evaluation system for investment policy facilitation in the host country,and the establishment of a dynamic information exchange platform for investment policy in the host country,so as to prevent our enterprises from blocking their overseas investment due to Information asymmetry and delay;To guide superior enterprises in the industry to build new R &D and Technology Resources,to provide legal services needed by enterprises for credit support and investment,to further increase investment in education and R & D,and to provide human resources for new technology R & D.Our country should build a new international scientific and technological cooperation relationship to get rid of the technology restriction caused by the investment restriction of developed countries.