Research On The Impact Of FDI Spillover Effect On China’s Industrial Structure Upgrading

The impact of FDI spillover effects on industrial structure has always been the focus of economics.There are many research results,but the research on the impact of FDI spillover effects on China’s industrial structure upgrade is little.However,as an important sector in China’s economic development,the industrial sector plays a vital role in China’s economic development.Especially in the context of contemporary economic globalization,the development of a country’s industrial sector cannot be separated from the impact of international division of labor.Foreign direct investment is one of the most direct ways to participate in the international division of labor.The spillover effects of Foreign direct investment will affect industrial structure upgrading through various channels.Therefore,it is particularly important to study the impact of FDI spillover effects on China’s industrial structure upgrading.This paper divides China’s industrial sectors into traditional industrial sector and high-tech industrial sector,and measures the industrial structure upgrade of China by the ratio of the output value of high-tech industry to the total industrial output value.For foreign direct investment,China’s purpose of attracting foreign capital to make up for the funding gap is getting weaker and weaker,and more and more attention is paid to high-tech FDI.In particular,China’s domestic industrial restructuring is in a new era of transformation.The level of high-tech requirements is getting higher and higher,so the inflow of high-tech FDI can lay a good foundation for more spillovers.This paper uses this as a starting point to study the impact of FDI spillover effects on China’s industrial structure upgrade.By combing the existing literature,it is found that the impact of FDI spillover effect on the upgrading of industrial structure is controversial.There are positive and negative views about FDI positive spillover effect.Therefore,further research on FDI spillover effect is needed.In order to study the impact of FDI spillover effects on China’s industrial structure upgrading,this paper uses a combination of theory and empirical methods to conduct research on the literature combing-mechanism analysis-status analysis-positive test.Firstly,in the theoretical research,this paper sorts out the concepts,theories and domestic and foreign research literatures on FDI spillover effects and industrial structure upgrading,and finds that the existing research fails to conduct targeted research on high-tech FDI spillover effects,which leads to the study of this paper.Secondly,Based on the existing research,this paper analyzes the theoretical mechanism of the impact of FDI spillover effects on the industrial structure upgrade in China,and puts forward the research questions.Secondly,the current situation of FDI utilization in China’s industrial field is analyzed.Finally,in the empirical analysis,this paper selects the independent variable----the ratio of the sales revenue of new products of industrial foreign-invested enterprises to the total sales revenue of industrial enterprises to measure the spillover effect of FDI through demonstration effect and competitive effect.The system GMM method is used to empirically study and analyze the overall industrial structure upgrading of China and the industrial structure upgrading of each region.The empirical results show that the FDI spillover effect has a positive impact on the industrial structure upgrading in China,but the results in the study of the eastern,central and western regions are very different.The FDI spillover effect is significant in the eastern part of China,and there is no significant influence in the central and western regions.Finally,according to the research results,it is proposed that in the process of introducing a large amount of FDI,the following policy recommendations on how to improve the industrial structure and how to make the industrial benign development in the central and western regions are put forward:(1)Improve the quality of foreign investment;(2)Balance the scale of foreign direct investment in the eastern,central and western regions;(3)The eastern,central and western regions should attract high-tech foreign direct investment according to local conditions;(4)improve the domestic investment environment and promote market competition.