The Impact of FDI on the Structure Upgrading of the Host Country's Manufacturing Industry:Evidence from China

摘要

Based on the theoretical analysis of the impact of FDI on the host country's manufacturing industry structure upgrading,this essay builds an evaluation index system of the structure upgrading of manufacturing industry from three levels:the advancement,rationalization and efficiency of industrial structure.The paper also analyses the impact of FDI on China's manufacturing industry upgrading by using an input-output model based on 2005,2007,and2010 Chinese input-output data.The results show that among 16 manufacturing sectors,FDI inflows relatively concentrate on leading industries and high-tech industries,when not considering industrial correlation,FDI inflows enhance China's overall manufacturing industry's labor productivity,and it also significantly enhances the efficiency of the structure of the manufacturing sector,but the promotion effect of FDI inflows in manufacturing structure upgrading is not obvious.After the introduction of input-output model,the paper analyzes one sector's indirect effects on other sectors,and finds that an industry with relative concentration of FDI inflows has a large pulling effect on other industries' capital and labor demand and sewage and energy consumption,which hinders the up-grading and efficiency of the structure of the manufacturing industry.The paper also analyzes other sectors' indirect effects on one sector,and finds that industries with larger demand of product mostly are leading and high-tech manufacturing industries,which is conducive to the advancement of manufacturing structure.Overall,the direct effect of FDI is that it has some positive effect on upgrading the structure of China's manufacturing industry,but from the point of view of the indirect effect of FDI,it has both positive and negative effects on promoting the upgrading of manufacturing industries.