Research On The Industrial Structure Optimization Effect Of China's ODI

Since the 1980 s,China's outward direct investment has made remarkable achievements and has played an increasingly significant role in China's economy.In the process of economic development,the upgrading and transformation of industrial structure is an important issue and upgrading industrial structure has become a long-term strategy for China's economic policy.Therefore,to promote the upgrading of domestic industrial structure through outward direct investment is a good strategy for Chinese companies.This paper makes the industrial structure optimization effect of china's ODI for study.Firstly,to summarize ODI theory and industrial structure upgrading theory,this article reviews a large number of domestic and foreign literatures on ODI.Secondly,based on the theoretical interpretation,the author analyze the impact mechanism of ODI on the upgrading of the industrial structure,namely,the path of resource-seeking ODI,market-seeking ODI,and technology-seeking ODI affecting the industrial structure.Thirdly,in the empirical aspect,econometric tests includes unit root tests,cointegration tests and Granger causal tests.And the empirical results show that China's outward direct investment promotes industrial restructuring to some extent,with an elasticity coefficient of 0.01197.In terms of channel analysis,eight economic variables including import and export volume,import and export structure,total factor productivity,unemployment rate,employment structure,and income.According the selected variables,the analysis show that China's ODI is mainly through enhance total factor productivity,increase export to realize industrial structure optimization.However;ODI has a negative effect on the industrial structure optimization by affecting the structure of imported goods.Finally,combining with the reality of China's economic development,the paper puts forward policy recommendations on rational choice of outward direct investment industry,balanced outward direct investment region,encouragement of non-state-owned enterprise development,and improvement of innovation capability.