The Effect Of Chinese Outward Foreign Direct Investment(OFDI) On Domestic Industrial Structure

The experience of European and American developed countries shows that "going out" strategy is the only way to achieve great power rise. How to bring the strategy into the macro-control policy framework of industrial restructuring and upgrading, and make OFDI an important means to adjust the domestic industry structure, becomes a hot topic in academia. However, in previous studies, most scholars made OFDI and the proportion of primary,secondary and tertiary industry output value an object. But this paper argues that, only the relationship between the two can't play any role in guiding economic work, therefore, this paper attempts to make OFDI and the domestic industry a further decomposition, and the study of the effect of OFDI in various sectors on the development of domestic industry.The effect of OFDI of different countries on domestic industrial structure is different, particularly when different scholars study the same country, the result is also different. This paper argues that, analyzing from the industry level, the results of the study above can be explained. The deviation between OFDI behavior of enterprises and expectation of OFDI of government is the root of the problems. And in the paper, we analyze how the purpose between enterprises and government was different. Furthermore, validate whether Chinese foreign direct investment has the influence on domestic industrial structure. Finally, from the perspective of Chinese government of Foreign Direct Investment motivation, we make in-depth verification on sub-sector of all of the Chinese industries.The empirical analysis shows that Chinese OFDI has some effect on the development of industrial structure, but to a lesser extent. And, according to motivation of OFDI theory, to some extent, Chinese OFDI transfers domestic excess capacity, has a use of foreign natural resources, obtains foreign advanced technology, increases trade within the industry. But, because of much unreasonable structure in Chinese OFDI, the Chinese government should increase the intensity of macroeconomic regulation and control. And it can make Chinese OFDI go into the right track.