A Study On The Impact Of OFDI On Chinese Industrial Structure

Since China performed the strategy of Going Out and B&R,the scale of Outward foreign direct investment(OFDI)has been enlarged.Outward foreign direct investment(OFDI)is one of the most important carriers for industries transferring among countries.No matter from the view of global economy or regional economy,OFDI has great impact on Chinese economic structure and performance.And industrial structure is related to whether the national economy can be sustained,so the optimization and upgrading of industrial structure is also a vital part of China's economic development.Thus how to update the domestic industrial structure via OFDI has become a very practical study.Firstly this article briefly introduces the present situation of Chinese OFDI and domestic industrial structure.Then in the part of theory analysis,according to different motives,this article divides OFDI into the types of market-seeking,efficiency oriented,source pursuing and technology seeking,and it examines the influence mechanism of different types of OFDI to domestic industrial structure.Next based on panal data of 31 China provinces in the period from 2003 to 2015,this article uses Chenery's model to study the impact of OFDI on the domestic industrial structure.The result shows Chinese OFDI has positive effect on domestic industrial structure,but the effect is not very significant.Next this article divides China into east,middle and west regions,and does empirical test respectively.The result shows in the east region,Chinese OFDI has significant positive impact on domestic industrial structure,but in the middle and west regions the result is not significant.In the end,this article draws some conclusions and puts forward some suggestions.