Research On The Impact Of Foreign Direct Investment On The Structural Upgrading Of China’s Equipment Manufacturing Industry

The 20 reports clearly point out that high-end equipment manufacturing industry is an important cornerstone of China’s industrial modernization and is very important to promote the high-quality development of China’s manufacturing industry.With reform and opening up entering a new stage,the utilization of foreign capital in our equipment manufacturing industry increased steadily.Therefore,the importance of exploring the internal logic relation between the introduction of foreign capital and the structural upgrading of our equipment manufacturing industry is self-evident.The research content of this thesis mainly focuses on literature review,theoretical analysis,current situation and measure analysis and empirical research.In the literature review part,this thesis summarizes the relevant literature,points out the shortcomings of the current research,and then puts forward the problems to be studied in this thesis.In the part of theoretical analysis,it elaborates the wild nen-shaped theory,three-gap theory and marginal industrial expansion theory.Based on this,it analyzes the influence mechanism of foreign direct investment on structure upgrading of our equipment manufacturing industry from four aspects:capital supply effect,technology spillover effect,industry correlation effect,"squeezing out and leaking out"effect.In the part of status and measurement analysis,the entropy weight TOPSIS evaluation model is used to measure the upgrading degree of the structure of our equipment manufacturing industry,and combined with the status quo of the introduction of foreign investment in our equipment manufacturing industry,it is found that there may be a certain relationship between them.In the empirical research part,based on the theoretical analysis above,the research hypothesis is put forward,and the panel data of 30 provinces,cities and autonomous regions from 2004 to 2020 are used to empirically test the influence of foreign direct investment on the structure upgrading of Chinese equipment manufacturing industry by establishing a two-way fixed effect model.Based on the above research content,this thesis draws the following conclusions.First,the scale of foreign investment utilization in China’s equipment manufacturing industry is generally on the rise,among which,the proportion of foreign investment utilization in high-end equipment manufacturing is significantly increased.Second,it is found through calculation that the structural upgrading degree of China’s equipment manufacturing industry maintained a gentle growth trend from 2004 to 2014,and its growth rate began to slow down gradually after experiencing a high growth stage from 2015 to 2020.In addition,there are obvious differences in the upgrading degree of equipment manufacturing industry structure in different regions.Thirdly,the empirical study shows that there is a significant inverse U-shaped nonlinear relationship between FDI and the structural upgrading of our equipment manufacturing industry.Fourthly,the influence of foreign direct investment on the structural upgrading of the equipment manufacturing industry also shows regional heterogeneity,and the effect of foreign direct investment on the structural upgrading of the equipment manufacturing industry in the eastern region is more significant in the inverted "U" shape.Based on the above research,this thesis puts forward concrete policy suggestions from three aspects:optimizing the environment for attracting investment in the region,guiding foreign investment into key industries and improving enterprises’ independent innovation ability,which is of great significance to promote the structural upgrading of our equipment manufacturing industry.