Export Structure Effect of Outward FDI of Sichuan Province of China

Abstract

This paper made an export structure effect analysis of outward foreign direct investment of Sichuan Province of China using the method of OLS and GMM with the provincial panel data of ordinary export from 2004 to 2016. The empirical results indicate that Outward Foreign Direct Investment can affect ordinary export positively both in China and in Sichuan Province. With each 1% increase of outward foreign direct investment, China’s ordinary exports increased by 0.344%, while Sichuan’s ordinary exports increased by 0.483%. Furthermore, this paper indicates that outward foreign direct investment leads to the upgrading of export structure in China. But, this paper can’t find sufficient evidence that Sichuan’s Outward Foreign Direct Investment can promote export structure.