OFDI and Home Country Structural Upgrading: Does Spatial Difference Exist in China?

摘要

Based on Chinese provincial-level data, this paper integrates the adjustment variables of the characteristics of Chinese outward foreign direct investment (OFDI) into a "standard structural" model and analyzes the impact of OFDI on China's industrial upgrading. First, OFDI can promote industrial upgrading in countries that are targets of investment. Second, the rapid investment process restricts the industrial upgrading effect of OFDI. This means the different tempo will make enterprises in the investing country unable to adapt to the rapid changes in market demand. Third, the irregular investment process will restrict the industrial upgrading effect of OFDI. OFDI has a slower, planned, regular, continuous pace that gives enterprises in the country making the investment time to adjust. Last, the industrial upgrading effect of OFDI in different regions of China are affected by the characteristics of adjacent regions. That is, the OFDI in each province in China is affected by the investment mode of neighboring regions.