Foreign Direct Investment And Industry Structure Adjustment In China

Facing economic globalization, the adjustment of industry structure should break through the traditional model which only focused on domestic adjustment, furthermore, based upon the domestic situation and international division of labor, the adjustment needed to be implemented through a global perspective. Along with the entry of WTO, China is getting more and more involved in the global economy, and facing more and more pressure from the open market. In this case, we need to broaden the open-door scope, attract more foreign direct investment (FDI), speed up industry structure adjustment, and build an industry structure which complies with the operation of the open economy system, thus enhance the Chinese industry's international competence.This dissertation is composed of four chapters. The first chapter reviews the theory on FDI and host country's industry structure adjustment and briefly introduces the experience from Brazil. Building upon the theoretical framework, plus the learning from the foreign field experience, the second chapter summarized the utilization of FDI in china and the current situation of the industry structure. The third chapter mainly analyzes the relationship between FDI and industry structure in china. While the last chapter made some recommendation based upon the above analysis.The thesis tries to bring some innovative ideas as follows:1. It discusses the relationship between FDI and industry structure in China from macro views, and analyzes the evolution of the industry interactive mechanism from dynamic perspective.2. It analyzes the effect of FDI to industry structure in china through an Econometric way.3. It analyzes the conflict between the individual MNC's actions and the industry's orientation in china, and recommendations are made.