Empirical Analysis On The Influence Of FDI On Fujian's Industrial Structure

Fujian's economy has rapidly developed and the economic capabilities has significantly improved after the reform and opening-up. However, with the declining attraction to Foreign Direct Investment and the slowly upgrading of industrial structure in recent years, Fujian has become the weakest link of the coastal areas in China. Exploring out the approach that Fujian can upgrade the industrial structure with the FDI from Hong Kong, Macao and Taiwan is extremely urgent, necessary and also very important.This paper firstly summarizes the mechanism of using FDI to promote the upgrading of industrial structure on the basis of previous studies. Secondly analyzes the status of FDI & industrial structure in Fujian, then explains why. Thirdly does an empirical analysis on the influence of FDI on Fujian's industrial structure, tests what FDI had contributed to Fujian's industrial restructuring through a regression model confirming that Fujian's FDI has played a very important part on the development of secondary industry; researches the influence of FDI on Fujian's industrial structure based on the statistical data; innovatively uses BP neural network to predict the impact of FDI on the future development of Fujian's industrial structure, with a small prediction error, the prediction results of 2010 and 2015 show that if FDI continued to over concentrate on the second industry, the secondary industry would grow with acceleration, rather than in favor of the exceeded development of the third industry ,neither the further upgrading of industrial structure. Finally based on the previous study, under the goal-oriented of building West-strait Economic Zone, from the point of resources, trade, technical, this paper recommends Fujian to use the FDI from Hong Kong, Macao and Taiwan to upgrade industrial structure with three patterns: Resources-Splicing pattern, Trade-Docking pattern, Technical-Grafting pattern. And the paper also draws the industrial layout plan of Fujian , trying to point out which industry that Fujian can enlarge and strengthen using the FDI from Taiwan.