Study on Industry Choice of Chinese Enterprises' Outward Foreign Direct Investment Based on Industrial Upgrading

It's very important for Chinese enterprises to make industry choice of outward foreign direct investment (OFDI) in order to promote industrial upgrading. At first, we put forward benchmarks Chinese enterprises should follow. Through principal component analysis, we find that OFDI of tertiary industry can promote industrial upgrading most obviously, followed by second industry and primary industry. As to the sector level, we find that high-tech and high value-added sector in tertiary industry is relatively backward, indicating that promoting effect on industrial upgrading of those sectors' OFDI is smaller. Therefore, we should take tertiary industry as the key industry choice of Chinese OFDI in the future, accelerating development of financial sector's OFDI at the same time, so as to improve their industrial upgrading effect.