Exploration on the indirect economic effects of foreign direct investment

Abstract

Based on manufacturing industry panel data from 1999 to 2013, this paper studies the indirect economic effects of FDI from two angles of the upgrading of industrial structure and the structure upgrading of industrial. We also test the endogenous problems by using the method of instrumental variable. The results show that: the inflow of FDI promotes the transfer of manufacturing industry from the labor–intensive industries to the resource–intensive industries and improves the overall level of manufacturing industry structure; The inflow of FDI has a significant role in promoting the structure upgrading of industrial.