The comparative study of the effects of FDI from US and Japan on China: Empirical study based on distributed lag model

Adopting distributed lag model and econometrics method, the paper tested the impacts of Japan and US FDI on China's industrial structure upgrading, employment and technology advancement. The result suggested that Japan had contributed more to China's economy than US in terms of the quantity, while US played more significant role in China's economic structure optimization from the perspective of quality. In the long run, the lagged effects of FDI from both the United States and Japan on China's three major industries have been weakened, but at different speeds.