Research On The Effect Of China’s ODI On Domestic Industrial Structure

Economic globalization has become the main trend of the world economic development in21st century. All countries are being integrated into the global economy wave. As China’s "going out" strategy proposed, China’s foreign direct investment (ODI) has been growing rapidly, which has a profound influence on China’s economy. China’s economy is in a critical period of industrial structure adjustment. It is well known that at present our country industrial structure is not reasonable, and the overall quality is low. The industrial restructuring is a difficult task; therefore, it is one of the main tasks of China’s foreign direct investment to upgrade industrial structure.The paper makes China’s foreign direct investment on industrial restructuring and the impact pathways for the study. Firstly, this paper reviews the relevant research results, and analyses the impact of industrial structure adjustment factors. Secondly, the paper describes the development process and the status quo on China’s foreign direct investment and industrial structure adjustment in details. Finally, according to motivation, China’s foreign direct investment can be divided into four types, that is market-seeking ODI, resource-seeking ODI, technology-seeking ODI, and investment income-seeking ODI. The paper analyzes the specific pathways of these four types ODI effect on industrial restructuring, and selects structure of export commodities, exports scale, structure of imported goods, imported goods scale, the scale of employment, income, technology and employment structure as conduction variables.Firstly, the paper empirical studies China’s foreign direct investment effects on industrial restructuring, and the empirical results show that China’s foreign direct investment promotes industrial restructuring to some extent. Secondly, according to the selected variables, the paper empirical studies the pathways of China’s ODI upgrading industrial restructuring, and the results show that China’s ODI is mainly through enhance the technological level, increase export and import scale to upgrade industrial restructuring. Finally, based on the empirical results, the paper puts forward some suggestions that how to use China’s ODI to promote industrial restructuring efficiently.