The Effects of Chinese IFDI and OFDI on Industrial Upgrading from the Perspective of Regional Heterogeneity

摘要

China is playing a more and more important role in the international division of labor as a dual role of host and investment country. This research identified the mechanism of FDI on Chinese industrial upgrading and analyzed the panel data of China's IFDI and OFDI from 2004 to 2014 with regression method using improved Chenery model to analyze the impact of IFDI and OFDI on China's industrial upgrading from an empirical perspective. Theoretical and empirical results have confirmed that IFDI and OFDI did play a role in promoting China's industrial upgrading. However there are large differences in various regions. The eastern coastal areas have obvious characteristics of export-oriented economy and OFDI started earlier and developed quickly. On the contrary, the development of OFDI in western regions has been relatively limited.