The Positive Study Of The Relationship Between Outward Direct Investment Of China And Industrial Structure Upgrading Inland

With the development of economic globalization, we will witness the increasingly close relationship between China and the rest of the world. This phenomenon shows that more and more Chinese enterprises go outward to invest in foreign countries as well as these native companies has also attracted a great amount of foreign investment every year. Based on the fact that China is increasingly becoming the big source of foreign direct investment, this article will analyze the relationship between Outward Direct Investment of China and the industrial structure upgrading inland. Finally, we will provide some relevant suggestions for policy-making.Looking back to the theory of Outward Direct Investment separately in developed and developing countries and the analysis on the relationship between Outward Direct Investment and the industrial structure upgrading in homeland, the article uses the comparatively proportion of the industries in Outward Direct Investment, the proportion of Outward Direct Investment to GDP and the like to illuminate the actuality of Outward Direct Investment. And the article works thoroughly on the system that how Outward Direct Investment influences the industrial structure upgrading inland. China's Outward Direct Investment promotes industrial structure upgrading inland by obtaining advanced technology, transferring superfluous throughput, and attaining overseas abundant resource, etc.Besides, based on the theory of Co-integration and Granger causal relationship, Co-integration and Granger causal relationship between China's Outward Direct Investment and industrial structure upgrading inland have been tested. The results show that: outward direct investment can't promote industrial structure upgrading inland in short-term, but can do this in long-term. But the industrial structure upgrading can't promote outward direct investment. And the article tries to explain that.At last, this article refers to the main experiences of industrial structure upgrading of other developed countries. And some suggestions were proposed from the policy and management of the government and strategies of corporation about Outward Direct Investment.