The impact of OFDI in G7 countries on domestic industrial structure upgrading: Evidence from China
DOI:
https://doi.org/10.54097/hbem.v20i.14457Keywords:
OFDI, developed countries, industrial structural upgrading, time series.Abstract
OFDI promotes industrial structure upgrading by reallocating resources. Based on the time series data of China's industrial structure and OFDI in G7 countries from 2003 to 2021, this paper discusses the relationship between OFDI in G7 countries and China's industrial structure rationalization and advancement. The results show that China’s OFDI in G7 countries can promote its industrial structure’s advancement in the short term, but not in the long term. Further research shows that China’s OFDI in G7 countries does not have a significant impact on the industrial structure’s advancement of China's central and western provinces, and its impact on the industrial structure’s advancement of China's provinces without free-trade zones and ethnic minority autonomous regions is weaker than that of the rest areas of China. This paper suggests that support for China’s central and western regions should be strengthened to optimize the allocation of innovative factors and industrial structure, and to promote better development in remote areas.
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