The Empirical Research On Home Country Economic Effects Of China's Outwards FDI In Manufacturing Industry

The issue of international capital flow has been the focus of International Economics.In recent years,with the rapid development of world economy and the accelerating of economy globalization,the international capital flow shows a new developing trend,and outward foreign direct investment has become an important international economic phenomenon.Its impact on the host country economy,the home country economy and the global economy has caught the world widespread attention,espacially the academic world.In 1979,the foundation of Jinghe CO.LTD symbolize the first step of Chinese enterprises foreign direct investment.At the beginning of twenty-first Century,the foreign policy changes from the "bringing in" mainly to the combination of "bringing in" and "going out",our country actively promote the enterprise transnational investment and operation,encourage the enterprises to participate in international competition,take full advantage of the vast market in the world,spare no effort to adapt to this situation,and the climax of Chinese enterprises foreign direct investment began to emerge.As the pillar industry of the national economy,manufacturing industry has made great progress,ranging from weak manufacturing country to major manufacturing country,but still not a manufacturing power country.In order to realize this dream,our country put forward One Belt And One Road strategy,establish the Asian infrastructure investment and development Bank,promote the implementation of the "made in China 2025",make efforts to promote the manufacturing development.The outward foreign investment of China's manufacturing industry has been the momentum of world's economic development.Based on the change of international and domestic policy environment and the vigorous development of the outward foreign investment,this paper regard the home country economy effect of Chinese manufacturing outward foreign direct investment as the research object.Rely on a systematic review of the impact of foreign direct investment on home economy,using the method of theoretical and empirical analysis,research the topic of manufacturing industry outwad foreign direct investment on home country.Firstly,a brief review of the classical theory of foreign direct investment in developed and developing countries,and the mechanism of the economic effects,mainly includes: the international trade effect,employment effect and technology progress effect.Secondly,the present investment situation analysis,showed the current situation of China overall and Chinese manufacturing industry's foreign direct investment from the perspective of investment scale,investment subject,investment type,investment industrial and regional distribution.Thirdly,empirical analysis.This paper mainly analysize the international trade effect and tchnology progress effect of China's manufacturing industry outwards FDI.In the multivariate regression model analysis of the international trade effect,China's manufactured goods and primary products import and export volume is regarded as dependent variables,China's manufacturing outwards FDI flows,China's GDP,China's actual use of foreign investment and the RMB real effective exchange rate is regarded as explanatory variables,both analyze the investment impact on the trade scale and trade structure.In the VAR model analysis of the technology progress effect,not only the domestic expenditures and foreign research and development capital stock,but also the effects of variable current and lag are considerred.Finally,according to the empirical results,this paper puts forward some countermeasures and suggestions for the future development of the manufacturing industry,and points out the shortcomings and future research directions.