Research on the industrial upgrading effect of China's outward foreign direct investment on equipment manufacturing industry

Based on the panel data of 30 provinces in China (excluding Tibet) from 2004 to 2017, this paper uses a two-way fixed effect stepwise regression model to analyze the impact of China's outward foreign direct investment on the high-end rate of equipment manufacturing industry, and empirically studies the effect of China's outward foreign direct investment on the upgrading of equipment manufacturing industry. The empirical results show that: China's outward foreign direct investment has a significant impact on the upgrading of high-end equipment manufacturing industry. From the regional level, the northeastern region has the most significant positive impact, followed by the eastern region, the central region has a negative impact, and the western region has no obvious impact. Finally, this paper puts forward corresponding countermeasures and suggestions on how to use outward foreign direct investment to promote the upgrading of equipment manufacturing industry.