A Research On China's Outward Foreign Direct Investment In The Middle-income Stage

After 30 years of rapid economic growth due to the opening-up policy, China has developed into the ranks of middle-income countries. At the same time, the factor endowments, economic structure, power of growth and development are undergoing profound changes. Among them, an obvious change is that relative labor abundance and scarcity of capital endowment characteristics has become the past. As the accumulation of capital is increasingly strong, China has become the main source of the world's foreign direct investment. However, China is still a developing country, the foreign direct investment of China's enterprises are characterized with obvious characteristics of developing economies. This feature is in conflict with the development of the traditional economics theory of using foreign capital, and cannot be explained by theories of foreign direct investment from the mainstream. How to grasp the features of foreign investment from middle-income economies, how to put into effective use of the two markets and the two resources at home and abroad to promote economic development, not only is the theory problem faced by Development Economics in the new era, but also carries a lot of urgent practical significance to the launch of China's economic development strategy under the new normal.But the existing research about the outward foreign direct investment(OFDI) of China is not satisfying. One important reason is that these researches ignored the current development characteristics of middle-income economies, and especially ignored the middle-income stage of factor endowment structure and further the changes of development tasks influence the foreign direct investment, which lack the explanatory power to explain the complex behavior of OFDI in the middle-income economies.In this paper, starting from the research perspective of Development Economics, considers not only the fact that factor endowment structure changes in the middle-income stage affect the mechanism of OFDI, but also pays more attention to the change of development tasks in the middle-income stage, and OFDI under the influence of the middle-income stage of the new normal. This article closely relates to middle-income phase factor endowment structure and the change of development tasks from historical and realistic dimensions based on China's OFDI in development stage, industry distribution, location selection and the performance of investment experience analysis, refined overflow both theoretical framework of the facts, features and comprehensive consideration middle-income phase structure of factor endowments, the change of development tasks, and the impact of the government function, the middle-income stage characteristics of China's OFDI in fact provides a reasonable explanation. The general content of this paper is as follows.Chapter 2 illustrates the OFDI theory and research progress. By combing the literature, it is found that:first, the existing theory are developed by the logic of advantage exploiting and study OFDI problems. These theories can hardly explain China's motivation to obtain advantage, inverse-gradient development investment atypical features of OFDI; Second, the existent researches are apart from the development characteristics of middle-income economies. OFDI for middle-income economies the interpretation of the complex behavior of simplification.Chapter 3 examines the development of China, from the initial use of foreign capital to large-scale OFDI in a historical angle, and tries to grasp the social and economic background behind this shift. We found OFDI experiences the early stage (1978-2000), rapid development stage (2001-2007) and the rapid development stage (2008-present). The strategic change fundamentally depends on the level of economic development, the structure of factor endowments and at the same time the transformation of the objective or the development tasks.The following chapters 4,5, and 6 are developed from the perspective of empirical analysis, and further investigate the middle-income phase change under the condition of factor endowment structure and development tasks, OFDI in the industry distribution and regional selection, and the dynamic change of investment performance and general characteristics of the facts.Chapter 4 analyzes China's OFDI industry distribution. This chapter first analyzes the overall status of the distribution of the China's OFDI industry and distribution characteristics of the industry; Then by building outward foreign direct investment industry preference index before and after the comparative analysis of the financial crisis dynamic changes of the distribution of foreign direct investment industry. The study of this chapter:first, China's OFDI in the industry are widely distributed, but for the mining industry and the market and business services (including leasing and business services, wholesale and retail, and transportation) investment is the main body, investment in the manufacturing industry is not much; Second, although the financial crisis did not block the rapidly expanding China's OFDI, but after the financial crisis era, investment industry distribution is undergoing structural adjustment, more new business in foreign direct investment preference index ranked the forefront of the industry, the traditional main appeal of falling investment industry; Third, with the middle-income stage increase our capacity for independent innovation, promote the development of industrial structure upgrade task, after the financial crisis era, further enhance the advantages of foreign direct investment to obtain type motive, to further strengthen the value chain of high-end industry investment preference.Chapter 5 is China's OFDI location choice analysis. This chapter first analysis of China's OFDI location distribution situation and characteristics; And then empirically analyze the influence factors of China's OFDI location choice, and the key to distinguish the investment to the developed countries and developing countries, and comparative analysis of investment location distribution difference before and after the financial crisis. This chapter shows that:first, the region of China's OFDI are distributed widely, invest not only in developing countries, also have developed countries, and in the wake of the financial crisis in the developed countries investment development more quickly; Second, to alleviate the middle-income stage our country factor endowments change lead to energy supply tension, after the financial crisis to developing countries access to resources motives of the more obvious; Finally, with the middle-income stage increase our capacity for independent innovation, promote the development of industrial structure upgrade task, after the financial crisis era, the motives of the developed countries access to strategic resources more obvious.Chapter 6 focuses on the performance of China's OFDI, set up by foreign direct investment for research and development of the host country capital reverse technology overflow model, using the data from 1985-2012 of China's OFDI measure analysis of reverse technological overflow effect. Research has shown that China's OFDI of reverse technology spillover effect does exist, but China's current reverse technology overflow effect of OFDI is still very small, the human capital level is low, with China's capacity for independent innovation is limited; Middle-income stage strengthen enterprise innovation ability, promote the development of industrial structure upgrade task is more urgent, should better use of foreign direct investment of reverse technology overflow benefit, encourage investment in technology-intensive enterprises.Based on the research of chapter 4,5,6, aspects of China's OFDI experience on the basis of analyzing the characteristics of the facts, chapter 7 from development economics analysis method considering the middle-income stage of China's outward foreign direct investment in developing countries. Differenting from previous research, this chapter on China's OFDI characteristics of the interpretation of the facts is not only considering the influence of the structure change of factor endowments, but considering the middle-income stage under the new normal structure of factor endowments and the change of development tasks, as well as the role of governments in developing countries in OFDI, comprehensively analyzed the necessity, inevitability and feasibility of China's OFDI. The analysis of this chapter, the rapid development of China's OFDI is not only a middle-income phase factor endowment structure change of nature as a result, but also conforms to the middle-income stage endowment structure, in response to the middle-income stage strengthen innovation ability, promote the development of industrial upgrading, under the government guidance and support strategic result of rational choice.Chapter 8 proposes the suggestions of OFDI for government and enterprise.On the whole, this paper provides a more clear overview for understanding the typical middle-income stage of the China's OFDI in developing countries, and contacts the particular structure of factor endowments and middle-income economies development tasks, and tried to explain further complete the middle-income economies causes and characteristics of OFDI, also help to clarify the direction of new international direct investment theory in the middle-income stage of development economics.