A Research on the Effects of China’s OFDI on Domestic Industrial Structure
|Keywords||Foreign Direct Investment Industrial structure The upgrading of industrial structure Granger test|
Since the reform and opening up, the rapid development of China's foreign economic and trade, especially foreign trade and foreign direct investment (FDI), already ranks among the top few in the world, not to mention its role in promoting China's economic development. The development of China's foreign direct investment (OFDI), however, has been in a situation of lag, although the Chinese government has made it clear to encourage domestic enterprises to \This article aims to analysis on the basis of previous studies on the economic impact of the domestic industrial structure of China's foreign direct investment, and verify through empirical testing. Throughout the course of development of China's foreign direct investment, because Marxism is deeply rooted in our country, in the beginning of reform and opening up, the mindset of the people has not changed, still adhere to the multinationals is a tool of the capitalist countries of economic expansion and economic colonialism, multinational corporations and international direct investment in the political and ideological serious understanding of prejudice, the slow development of China's foreign direct investment during this period. With the increase in awareness and changes in the concept of foreign direct investment, the pace of development has gradually accelerated to 1993, China's foreign direct investment flows of $ 4.4 billion, and the stock reached $ 13.768 billion. But after seven years due to the policy as well as the impact of the economic situation, China's foreign direct investment has been maintained hovering around $ 2,000,000,000. The improvement of the economic situation as well as the introduction of the Chinese government encourages foreign investment policy in 2001 contributed greatly to the development of foreign direct investment, China's foreign direct investment flows to 2010 was $ 68.811 billion, the stock reached $ 317.211 billion. The development of China's foreign direct investment in the past 30 years in the amount of larger scale foreign direct investment, but the quality is still a lot of deficiencies. In the investment industry, a large part of the investment is concentrated in low value-added sectors of the mining industry and commercial services, the greater role in boosting the industrial structure of industry to invest less than normal, and 2009 manufacturing investment in the stock of $ 13.59 billion only accounted for 5.5% of the total stock, scientific research, technical services and geological prospecting industry investment in the stock of $ 2.87 billion, accounting for only 1.2%. In the investment area, mainly focused on the Asian, African and Latin American developing countries, developed countries, low stock. The same time, a large part of investment destinations, for example, to invest in the Virgin Islands and the Cayman Islands is recognized as tax havens, and not the purpose of this part of the funds to invest in appreciation but tax avoidance, and adversely affect the level of domestic industrial structure. Firstly, from the theoretical analysis of the impact of foreign direct investment in the industrial structure of the home country four-promoting effects, the value structure upgrade effect, asset structure upgrade effect, the effect of technical upgrading of the structure and employment structure upgrade effect, as well as foreign direct investment investment in the home country adversely affected. Found in the study of China's foreign direct investment, have had a role in promoting China's foreign direct investment on China's import and export of technological progress, employment and the supply of resources, but at the same time due to the structural characteristics of China's foreign direct investment in industries, regions and investment entities , there are some limitations on its role to promote the upgrading of domestic industries. Subsequently, according to the aforementioned theory set up a test model of the level of China's industrial structure, China's foreign direct investment in the relationship with the level of industrial structure through empirical test. Cointegration test and Granger test results show that there is a two-way role in China's foreign direct investment and upgrade the industrial structure means that on the one hand, China's foreign direct investment has a role to promote the upgrading of industrial structure; On the other hand, the domestic upgrading of industrial structure also contributed to the conduct of foreign direct investment. Finally, reference proposal for the course of the study found that Chinese enterprises and government on foreign direct investment, in order to make better in the two-way catalytic role in the development of China's foreign direct investment and industrial structure.