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.
Highlights
Since the outbreak of the global financial crisis, as international trade frictions have increased and trade protectionism has become increasingly apparent, Chinese foreign trade is facing more and more enormous challenges
It is shown that there is a close relationship between the OFDI and the domestic trade export, with OFDI expanding the scale of overall export trade, and promoting the upgrade of domestic trade structure
The analysis shows that Foreign Direct Investment in China inhibits the improvement of export trade structure, while Chinese Outward Foreign Direct Investment is conducive to the improvement of the structure of export trade, but its promotion is less than the promotion of industrial structure
Summary
Since the outbreak of the global financial crisis, as international trade frictions have increased and trade protectionism has become increasingly apparent, Chinese foreign trade is facing more and more enormous challenges. The biggest challenge to Chinese export trade is not whether it can restore the growth rate of the past, but whether it can strengthen
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