Abstract

Despite the upgrading of industrial structure is not the direct purpose of OFDI, the experience of many countries shows that there is a connection between them. Through the method of fixed effect and SGMM, this paper aims to estimate and analysis the industrial upgrading effect of OFDI of Sichuan province of China, using the panel data of 31 districts of China from 2003 to 2016. From the empirical results we come to the conclusion that OFDI can promote the optimization and upgrading of industrial structure in China and in Sichuan province. For every 1% increase in OFDI, China’s industrial structure index rose 0.00182% and Sichuan’s industrial structure index rose 0.0237%.

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