The Research Of Industrial Structure Effect By Foreign Direct Investment

The structural openness of the development of modern economy is quitedifferent from that in the past. Since China is one of the countries that introduce thelargest amount of foreign investments across the world, it has played a role throughcapital effect and technology spillover effect in the growth of China. As the policy ofintroducing FDI has turned from quantity expanding to quality raising, we need toconsider FDI from the deeper aspect to expect its efficiency.The contradiction development and the change trend of this shift have greatinfluence upon Chinese economy from both angles of international and regionaleconomy. The importance to Chinese economy of the industrial structure and thechange of industries that receive foreign direct investment is not only a result of themacro environment of international industry shift, moreover, it is determined by thespecific interim of the system in China. The coexistence of high increase rate of theeconomy and high change rate of the system is an apparent feature during this interim.A crucial task in this period is to realize the industrialization, in other words, tocomplete the historic change from the traditional economy to the modernindustrialized economy. Since specific and profound relation is existing between thestructural change and the economic growth, to analyze the external function towardsthe growth of Chinese economy brought by foreign direct investment and the deeprelationship between these investments and the growth of Chinese economy is ofgreat theoretical and realistic importance for the advance of the utilizing rate offoreign capital under this new international environment.The maximization of "structural benefit" should be taken as the symbol of theoptimization of the industrial structure, and a reasonable industrial structure shouldaccelerate the economic growth. Therefore, this paper tries to associate the industrialstructure of industries that receive direct investments form foreign capital with theeconomic growth. We take the "structural benefit" as the kernel and the start of thispaper, try to prove and analyze the functions and effects of the "structural benefit"brought by the industrial structure and the change trend of industries that receive foreign direct investment, make comprehensive analyses on the structural featuresand its change of industries that receive foreign direct investment, efficiency ofsource collocation, production efficiency, total factor productivity, and various otherindexes that reflect the economic growth of China, and discuss the formation systemof industrial structure effects that are fully supported by foreign investments.Moreover, this paper attaches great importance to the motile conditions of China,analyzes the effects and the direction of the effects on the structure effects of foreigndirect investment brought by all kinds of motile factors in China, and presentscorresponding judgments and policy meanings.This paper mainly focuses on the following contents:1. We combine the industrial structure effects raised by foreign direct investment and the motileconditions of the host country, establish a general theoretical structure of industrial structureeffects brought by foreign direct investment, try to explain the factors and functionalprinciples that affect industrial structure of industries that receive foreign direct investment,and mainly analyze the motile functions to the industrial structure effects as a result of foreigndirect investment.2. It adopts statistical data of China to prove and analyze the way of taking effects tothe economic growth that is affected by the change of the industrial structure ofindustries that receive foreign direct investment, and proves the existence of theindustrial structure effects that are brought by receiving foreign direct investment.3. Based on the theoretical analysis, the paper presents further investigations andanalyses of the industrial structure effects of the Tertiary Industries raised byforeign direct investment in China, the functions, inner formation system, and theactive factors of the inner industrial structure effects within the industry section,investigates the influences upon the industrial structure effects of industries thatare supported by foreign direct investment in China, and presents certaincorresponding suggestions.