A Challenge to Different Path for Industrial Upgrading in China

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The purpose of this paper is to investigate the prospects and possibilities of China’s industrial upgrading through outbound foreign direct investment(OFDI). In a market economy, industrial upgrading is usually realized on the basis of market competition and price mechanism while in a transitional economy like China, such shift is not at all smooth and automatic. Promoting the upgrading of domestic industries has become one of the main objectives of the so-called “going-out for development strategy” launched by the Chinese government since 2000. The analysis in this paper is made through observing a certain number of subsidiaries of Chinese firms that were surveyed by the author in past several years. Although the analysis in this paper has reached an affirmative reply to the issue, yet the author insists on that the final and also the most effective way for China to reach the purpose of industrial upgrading is the formation of sustained innovation capability.

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  • 経済学季報

    経済学季報 65 (2), 1-24, 2015-11-06

    立正大学経済学会

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