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

Shuyuan Jiang and Dan Cheng

International Journal of Economics and Finance, 2017, vol. 9, issue 6, 154-161

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¡±.

Keywords: outward FDI; upgrading of industrial structure; manufacturing industry; literature review (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (2)

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