Study on Industry Choice of Chinese Enterprises’ Outward Foreign Direct Investment Based on Industrial Upgrading

Abstract

It's very important for Chinese enterprises to make industry choice of outward foreign direct investment (OFDI) in order to promote industrial upgrading. At first, we put forward benchmarks Chinese enterprises should follow. Through principal component analysis, we find that OFDI of tertiary industry can promote industrial upgrading most obviously, followed by second industry and primary industry. As to the sector level, we find that high-tech and high value-added sector in tertiary industry is relatively backward, indicating that promoting effect on industrial upgrading of those sectors' OFDI is smaller. Therefore, we should take tertiary industry as the key industry choice of Chinese OFDI in the future, accelerating development of financial sector's OFDI at the same time, so as to improve their industrial upgrading effect.

Empirical Study of the Impact of Outward Foreign Direct Investment on Water Footprint Benefit in China

“…These studies have generally found that the technological progress effects of OFDI are heterogeneous across different regions, different industries, and enterprises with different ownership characteristics. As for the industrial structure effect of OFDI, most studies have found that OFDI has played an optimizing role in the home country's industrial structure (Pan and Yuan, 2016, Andreff, 2017, Nie, 2017, Zhao and Ye, 2018) [6][7][8][9]. However, there is no clear consensus regarding the industrial structural effect of OFDI.…”