Outward Foreign Direct Investment and Transformation and Upgrading of China's Manufacturing Industry

Ruibing Wu

School of Economics, Sichuan University, Chengdu, China

Abstract: Since the the reform and opening-up, China has rapid development in outward foreign direct in-vestment and manufacturing industry, but the transformation and upgrading of manufacturing industry remain unsolved. Based on the above background, the research on outward foreign direct investment and transformation and upgrading of china's manufacturing industry is proposed. It’s proved by complete sample test that the outward foreign direct investment can promote the transformation and upgrading of china's manufacturing industry; it’s proved by areas separated test that the promotion of outward foreign direct investment to transformation and upgrading of china's manufacturing industry is different according to areas, and more obvious in developed area.

Keywords: Outward foreign direct investment; Manufacturing industry; Transformation; Upgrading