Adjustments in industrial structure are a necessary condition to maintain sustainable economic growth. Outward foreign direct investment (OFDI) is a strategy that the P.R. China was slow to pursue but developed quickly once initiated. This article analyzes the relationship between OFDI and the adjustment in industrial structure of Guangdong Province. The absolute, relative, and comprehensive degrees of the Grey incidence are calculated and compared with their equivalents for the P.R. China. The results show that adjustments in industrial structure are closely related to OFDI since OFDI in fact drives this optimization and upgrading. These impacts are far more evident at the provincial than the national level, with implications for P.R. China’s future economic growth.
OFDI, grey system, industrial structure.
Jaime Ortiz is with Global Strategies and Studies, University of Houston, Houston TX 77204, USA (e-mail: email@example.com).
Jingwen Xia is with the School of Economics, Jinan University, Guangzhou, P.R. China (e-mail: firstname.lastname@example.org).
Haibo Wang is with the A. R. Sánchez Jr. School of Business, Texas A&M International University, Laredo, TX 78041, USA (e-mail: email@example.com).
Junqi Cao is with the School of Economics, Jinan University, Guangzhou, P.R. China (e-mail: firstname.lastname@example.org)
Jaime Ortiz, Jingwen Xia, Haibo Wang, and Junqi Cao, "
The Influence of OFDI on the Industrial Structure of Guangdong Province: An Application of the Grey Incidence Theory," Journal of Economics, Business and Management vol. 4, no. 4, pp.