The Analysis Of The Effect On Industrial Structure For Foreign Direct Investment In The Developing Host Countries

The article establishes a frame of the analysis of the effect on industrial structure for foreign direct investment in the developing host countries. The methods, including the method of the theory analysis to combine with the real example, the historical method and the dynamic method, are used in the text. An innovation of the article is the law of progressive decrease towards the scale of industrial department. On the basis of the law, the effect of FDI to the developing host countries are mainly shown in four aspects, they are, the effect on pillar industry, the promotion effect on industrial structure, the modernized effect on industry, and the negative effect on industry structure. The promotion effect on industrial structure has not received due attention hi those Japanese scholar's theories. According to the effect on industry structure, the author puts forward the tactics that the host countries should take. The developing host country should regard it as the external factor to utilize the straight effect on industrial structure for FDI, and regard the implement of the policy of inclination to the guiding industry and perfect national innovative system as the inside factor. Two major factors can cut down the developing time at a certain stage, and make the developing host country achieve the objective of catching up with the country in higher developing stage.