OFDI Reverse Technology Spillover Benefits Of An Upgrade Of The Industrial Structure Of The Study

With the development of economic globalization, China’s "going out" is faster andfaster. As a result,the amount of foreign direct investment of China has been highestamong the world, and thus China’s foreign direct investment issues become the focus ofacademic research. On the other hand, thirty years after the reform and opening up,China is facing domestic transformation of economic development, of which the mostimportant issue is to change the low level of domestic technology, the irrational industrialstructure, so changing the industrial structure upgrading path to adjust the way ofeconomic growth is one of the fundamental way to the development of China’s economictransformation. Thus, the relationship between reverse technology spillover effects offoreign direct investment and the mother country industrial upgrading in developingcountries especially china has attracted the attention of scholars in the country.Based on previous research, firstly this article analyzes the condition of china’sforeign direct investment and the industrial structure. Secondly, based on OFDI-technology spillover-industrial structure upgrading path. On use of china’s related data,on the basis of our data, using Data Envelopment Analysis (DEA) method to calculatethe average productivity of China’s foreign investment industry, and carried out anassociation with the use of Grey Relational Analysis to industry foreign direct investmentR&D spillovers. The result showed that the OFDI industry structure is closely related tothe domestic industrial structure upgrading. Specifically, the first industry as a whole, thethird industry in high-tech industries and the service sector are weak in reversetechnology spillover effects, and manufacturing industry in the second industry OFDIgenerated relatively strong reverse technology spillover effects. So in order to transformthe country’s economy, China should enlarge foreign direct investment, optimize OFDIindustrial structure,regional distribution, investors and investment modes, and in thesame time, the government should play a role in macro-control and policy-oriented inorder better access to external technologies to optimize OFDI industrial structure.