A Study On Chinese Industrial Upgrading Under The Perspective Of The Collaborative Development Of Export And OFDI

The degree of openness of China gradually increases with the development of economic globalization. International trade and foreign direct investment have become important forms of participation in international economic activities. On the other hand, China's industrial structure quietly changed along with the deepening of economic globalization. These three seems different but in fact there is a strong link between them. Since the reform and opening-up, China has insisted "introduce" strategy. The economics of China increase via FID, exports and consumption. In 21 st century the OFDI of China increases rapidly and it gradually blend with exports so there is a increasingly close relationship between the two besides the synergistic effect of them become more and more obvious. In the critical period of industrial restructuring, making good use of international trade and foreign direct investment is very important. Therefore, the study of the relationships among them also has a strong practical significance.There are two main contents in this paper. One is to explore the collaborative relationship and evolution international trade and foreign direct investment. The other is that based on this empirical analysis method to quantify how the international trade and foreign direct investment affect industrial upgrading. This article focus on exports and foreign direct investment mainly because firstly exports and foreign direct investment two ways that companies choose to enter international market, both of which have comparability, secondly China's development model of economic emphasis on the "going out", the reliance on FDI is lower and lower but OFDI is more and more important.First, review the existing literature and theoretical then categorized the theory. From the perspective of economics and synergetics analyze the relationship between export trade and OFDI. Researches on the relationship between trade and FDI are mainly divided into substitution effect theory, and complementary effect and uncertainty theory. Second describes the theoretical connotation of classic industrial upgrading under open conditions and analyze how exports and OFDI affect industry updating.Finally, through empirical analysis identify the evolution and collaborative relationships of China's export trade and foreign direct investment. Order parameter of trade and investment system is exports. Export dominated system evolution, trade promote foreign direct investment to develop while foreign direct investment inhibit on trade. Both exports and OFDI can promote industrial upgrading.Through in-depth analysis from the macro level to the micro level, this paper has a in-depth study on the effect of how exports and OFDI promote industry updating and draw valuable conclusions. And make some advice for “going out” strategy optimization and provide product upgrades a useful basis.