Research On The Interactive Relationship Between China’s Foreign Direct Investment And Domestic Industrial Structure

Since the world economy came into the post crisis, the world economy and industry competition among countries gradually normalized, global economy and the adjustment of industrial structure has new opportunities and challenges. Foreign direct investment development led to the refactoring of a global industrial chain and the flat trend of and the international division of labor. The international division of labor system has diversified characteristics and the further open effect of the industrial structure has been further improved.In this case, China’s industrial structure adjustment and upgrade faces the mutual competition of the developed countries and developing countries. At the same time, as the internationalization level of China’s industry and enterprise enhances unceasingly, FDI has developed rapidly, industry distribution covers almost all kinds of three big domestic industry.In recent years, although the international situation and world economic development is complicated, the growth of the trade and investment is weak, but in between 2002 and 2013, China’s FDI flows has maintained a good momentum of development – the growth rate of 39.8%. Considered the problem in China and the development advantages, under the pressure of the industrial structure adjustment, researching how to make use of the benign interactive relationship between the FDI and domestic industrial structure to drive the optimization and upgrading of domestic industrial structure and promote FDI industry layout rationalization, has important theoretical and realistic significance for china which is in economic transition period.For a long time, China’s FDI industry structure and industry layout is different from the traditional theory in developed countries and the general theory in developing countries, its development and changes interact with gradual adjustment of industrial structure. On the one hand, the basic role of the domestic industrial structure has pros and cons mismatch effect on the industrial distribution of FDI. And on the other hand, the layout of the FDI plays a vital role on the industry of domestic enterprise internationalization and the promotion of the overall industrial structure. The connection and function is irreplaceable compared to the international trade in goods and services trade. The main research content of this article is based on the basic ideas:First of all, combined with the status quo and problems of domestic industrial structure, analysis the current status and characteristics of the Chinese FDI of industry structure and industry distribution from the review of the evolution of industrial structure of China’s FDI since the reform and opening up.This article has micro, meso and macro levels of analysis on Industry structure and industry distribution of FDI.The microscopic main causes is that our country enterprise has the market scale, capital, technology advantages, medium cause depends on multi-level ladder-like characteristics of China’s industrial structure, more emphasis on macro level of policy guidance of the developing countries. Explained the causes, this article highlights the industry and the development of the industrial structure of FDI in the basic formation of industrial structure.To focus on the matting of the following theoretical and empirical analysis on industrial interaction.Second, this paper analyzes the complexity of the industrial structure in China’s current FDI from the development of FDI and domestic industrial structure state relations based on the theory of international direct investment and industrial organization and the relevance between the domestic industrial structure and FDI.Based on the advantage or disadvantage of the domestic industry, devising China’s FDI industry according to different investment driving force, analyzing the applicability and innovation of the FDI theory on comparative advantage industry, spare capacity, shortage of resources industry, the advantages of cultivating industrial. Through the study, the interaction between the China’s FDI and domestic industry is diversification, the driving force of investment In the short term is not the only; At the same time, upgrade path of FDI to a domestic industry is not the only. Thus, more comprehensive theoretical connotation diversified industrial interaction theory came to being. "Diversified industrial interaction theory" is a kind of divergent theories, is more suitable to explain the current China’s FDI industry distribution and the connection of the domestic industry, this theory is reasonable and feasible to promote China’s FDI and industrial developmentThen, the paper studies the empirical test on the interactive relationship between the domestic industrial structure and FDI through the relationship between two steps of econometric analysis. In the first step, working out related inspection between the domestic industrial structure and industrial structure of FDI by constructing a VAR model, and to further examine the size of the causal relation and mutual influence of the different level of industry and the FDI. The conclusion is that the domestic industrial structure has causal link with industrial structure of FDI, and the duration of interaction is different due to different level of industry. Among them, the second and third industry of domestic development has significant effects on the FDI, and the effect of the first and second industry of the FDI on domestic industrial upgrading is more apparent. In the second step, choosing three key sectors in the industry to study the relationship between domestic production and FDI by constructing panel data model, which reflects the impact of FDI on its output from the meso level, thus verified the different industry FDI impact on the overall industrial structure size.Finally, the article analyzes the cases of Chinese enterprises FDI to Africa and in the United States, analysis the current typical path of china’s FDI, explore the optional two modes of FDI industry under the mutual influence of China’s FDI, the transfer path of the low-end industries and the upgrading path of high-end industries.On the whole, through theoretical innovation and empirical test, this paper verifies the relationship between the domestic industrial structure and FDI, in order to determine the goals and path of future FDI industrial layout. On this basis, puts forward suggestions on the future development of the FDI in our country on the industry policy level...