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The Impact of Outward FDI on the Upgrading of China¡¯s Manufacturing Industry Structure: A Literature Review

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  • Shuyuan Jiang
  • Dan Cheng

Abstract

Since China put forward the strategy of ¡°going out¡±, outward foreign direct investment (FDI) began to grow rapidly, and the manufacturing industry, as the pillar industry of our country, is facing the dilemma of transformation. This paper will focus on this topic of the relationship between the outward FDI and upgrading of China¡¯s manufacturing industry structure, and sort out and summarize the domestic and foreign literature. It is concluded that the existing literatures are consistent: the outward FDI can promote the upgrading of industrial structure of home country. In terms of China¡¯s manufacturing industry, the outward FDI can promote the upgrading of China¡¯s manufacturing industry, however, the impact have a kind of hysteresis quality, and may produce the phenomenon of ¡°industry hollowing out¡±.

Suggested Citation

  • Shuyuan Jiang & Dan Cheng, 2017. "The Impact of Outward FDI on the Upgrading of China¡¯s Manufacturing Industry Structure: A Literature Review," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(6), pages 154-161, June.
    • Handle: RePEc:ibn:ijefaa:v:9:y:2017:i:6:p:154-161
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    References listed on IDEAS

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    Cited by:

    1. Sicong Li, 2020. "Determinants of Chinese Direct Investment in Central-East Europe under the Belt and Road Initiative Framework: A Panel Data Analysis," International Journal of Innovation and Economic Development, Inovatus Services Ltd., vol. 6(4), pages 62-81, October.
    2. Wang, Delu & Wang, Yadong & Jiang, Wuding & Shi, Xunpeng, 2023. "Has outward foreign direct investment alleviated industrial overcapacity in China? An empirical test of the upstream and downstream industrial links," Structural Change and Economic Dynamics, Elsevier, vol. 67(C), pages 250-263.

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    More about this item

    Keywords

    outward FDI; upgrading of industrial structure; manufacturing industry; literature review;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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