Research On The Relationship Between OFDI And Industrial Upgrading In China

Overseas experience shows that OFDI can effectively promote industrialupgrading of the investors. Now China is already the third largest country of OFDI inthe world, and also China is at the crucial moment of industrial upgrading. As adeveloping country, can China’s OFDI effectively promote the adjustment ofindustrial structure as well as the United States, Japan, South Korea and some otherdeveloped countries? Have China’s OFDI taken the needs of domestic economicdevelopment into account? According to the requirements of the “Twelfth Five-YearPlan” for industrial upgrading, what policy should the Chinese government take in thefuture? This paper has tried to future research these questions above on the basis ofprevious research.Firstly, we proved it in theory that OFDI can promote industrial upgrading of theinvestors; secondary, we summarized the investment profiles, industry distribution,location distribution, and analyzed the current situation of industrial structure; thirdly,the paper empirically analyzed the influence of OFDI to domestic industry structureadjustment on the model of the gray correlation method, the main result show that (1)China’s OFDI promoted the home industrial upgrading,(2) in terms of the industrychoice, the correlation degree for the adjustment of industrial structure from high tolow in turn is: computer services and software industry, mining industry,manufacturing industry, wholesale and retail industry, construction industry, realtyindustry, transport, tenancy and business services industry,(3) in terms of the locationselection, the correlation degree for the adjustment of industrial structure from high tolow in turn is: Asia, Latin America, North America, Europe, Oceania and Africa.Finally, from the qualitative and quantitative point of view, combined with our national strategic planning, proposed OFDI for policy recommendations.