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Foreign Economic Relations

The upgrading effect of foreign investment on industrial structure and the analysis of the concerning mechanism

2014-08-27

By Zhao Jinping 

Date: 2002/06/16

Abstract: 

The paper carries out empirical study into basic features of the structure of industries with foreign investment in China, its role and the mechanism determining the sectoral distribution of foreign investment. It is of the view that comparative advantage and the economy of scale of capital output are the main factors influencing sectoral distribution of foreign investment, role of foreign investment on upgrading industrial structure lies chiefly in its own technological advantages, and the effect of structural factors is not substantial.