Study of the Influential Mechanism of Outward Direct Investment on China's Industrial Upgrading

With the integration of the global economy and speeding development of China Economy, moving out is becoming increasingly important for China. In this paper, mechanism of China Outward Direct Investment (ODI) on Industrial upgrading is analyzed both from the incentive of firm investment at the micro level and from the industry effect at the macro level. What's more, empirical study is made to examine the influence of ODI on Industrial Structure via conducting factors, to find that exports scale, labour structure and engineering level are the 3 main conducting factors. It's found that ODI has caused local talent hollowing, which is needed to be focused on in future.