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.