A Research on Dynamic Relationship between OFDI and Industrial Structure Optimization—A Case Study of Guangdong Province.pdfVIP

Modern Economy, 2016, 7, 55-63 Published Online January 2016 in SciRes. /journal/me /10.4236/me.2016.71006 A Research on Dynamic Relationship between OFDI and Industrial Structure Optimization—A Case Study of Guangdong Province Ziqi Ye School of Economics, Jinan University, Guangzhou, China Received 16 December 2015; accepted 22 January 2016; published 25 January 2016 Copyright © 2016 by author and Scientific Research Publishing Inc. This work is licensed under the Creative Commons Attribution International License (CC BY). /licenses/by/4.0/ Abstract Regarding the data from 2003 to 2013 of the typical opening city in Guangdong province, this pa- per is going to use the VAR model to study the dynamic relationship between OFDI and industry optimization. And we come to the conclusion that the industry structure rationalization exerts a more significant auxo-action on OFDI than the latter does on the former; however, there is no sig- nificant Granger relationship between OFDI and industry structure advancement. According to above results, this paper tries to give an economic explanation combining with current situation of OFDI. Keywords Industrial Structure Optimization, Outward Foreign Direct Investment (OFDI), VAR Model 1. Introduction The trend of economic globalization is irreversible, and China’s economic growth is closely connected with the opening to the outside world. Since the inception of China’s reform and opening-up policy, especially China ’s accession to the WTO (World Trade Organization), China’s outward economy rapidly develops; especially China’s outward foreign direct investment (OFDI) sees a qualitative leap. In 2014, China’s OFDI flow was 123.12 billion