Analysis Of The Industrial Structure Effect From Chinese Direct Investment In World’s Six Major Economies

Outward direct investment is an important component of China’s strategy of "going out", although started late, but development is rapid. In 2012 and 2013 China is among the three largest foreign investor in the world.Outward direct investment can have an important impact on the economy of one country, this paper analyzes the effect of industrial structure adjustment. Existing researches mostly take the total amount of foreign direct investment in China as the research object. This paper takes China’s direct investment in the world’s six major economies as the object, and analyzes the relationship between outward direct investment and the upgrading of the industrial structure from the angles of region and industry.This paper takes China’s industrial structure optimization index and ODI stock data on Hong Kong, EU, ASEAN, American, Australia and Russia during 2007-2012 year as sample, using grey correlation analysis method, analyzes the relationship between ODI of the six major economies and domestic industrial structure optimization. The study says that, the above grey correlation degrees are more than0.7, which shows direct investment for six major economies has a big relevance with the domestic industrial structure upgrade, namely, outward direct investment can promote the upgrading of domestic industrial structure. Meanwhile, the industrial structure effect of direct investment in every economy’s industry has its feature.Therefore, the location and industry of the outward direct investment should be selective, effective outward direct investment should be combined with our country economy development situation and national economic development situation.