TITLE:
Research on the Impact of Foreign Direct Investment on Chinese Trade Structure Optimization —Based on the Strategic Background of the Belt and Road
AUTHORS:
Xia Zhang
KEYWORDS:
Foreign Direct Investment, Trade Structure, The Belt and Road
JOURNAL NAME:
Modern Economy,
Vol.10 No.3,
March
21,
2019
ABSTRACT: According to the data of Chinese OFDI and its
domestic export trade during 2003 and 2016, the trade structure of China to
host country is calculated in this paper, so as to analyze the influence of OFDI on
domestic trade structure adjustment. It is shown that there is a close
relationship between the OFDI and the domestic trade export, with OFDI not only
expanding the scale of overall export trade, but also promoting the upgrade of
domestic trade structure. Further, it is found that the marginal transfer effect
of OFDI in China is not significant, while the value chain upgrade effect,
industrial correlation effect and reverse technology spillover effect are
positive. Specifically, OFDI has significantly promoted the increase in the
proportion of exports of intermediate goods, capital goods and
technology-intensive products in China, which is conducive to the improvement
of Chinese international division of labor. In addition, this paper finds
similar conclusions through regression analysis of Chinese OFDI and exports trade
data of the Belt and Road countries.