What role has FDI on China's foreign trade competitiveness? This problem is always the hot research point. How did FDI affect Chinese medicine industry? This paper studied China pharmaceutical intra-industry trade status, and the inter and intra-industry influence of FDI are distinguished, based on dynamic panel data model to carry out GMM estimation, obtained the conclusions that FDI spillover is significant, but mainly between industries. Investigating its reason, the article put forward the suggestion of strengthening the R & D investment, improving personnel quality, etc.
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