Study On Foreign Direct Investment And The Industrial Structure Effect Of Guangdong

In 2002, GDP per capita of Guangdong province is RMB 15030, amount to US 1815.88. According to Chenery's division criterion of economic development stages, Guangdong is at the middle and the later period. According to Dunning's criterion of investment circle theory, it's at the transition stage from the second grade (GNP per capita, US 400-1500) to the third grade (GNP per capita, US 2000-4750). Based on International experience, during such development stage, the function of utilizing foreign direct investment (FDI) should transform. In the former stage, we solve inadequacy of capital through introducing FDI, but now we should utilize FDI to introduce advanced technology and management experiences, and then promote Guangdong's industrial structure upgrading. Economic development is actually the evolution process of industrial structure adjustment and upgrading and relation with economic development. In a sense, the process of economic development is in fact the process of industrial structure adjustment and upgrading. Under open environment, industrial structure adjustment of a country or a region should integrate into open economy, and it's an effective channel to utilize FDI to promote national and local industrial structure upgrading and development. Of course, there're dual functions of FDI to industry adjustment of host country or districts receiving investment, one is positive function, the other is negative function. The main train of thought of this paper is to analyze the function of FDI to three industry structure and inner trades respectively. At the same time, this paper makes empirical research on influence of FDI to Guangdong's industrial structure. And this paper hope get conclusion that utilizing FDI can effectively promote industrial structure upgrading. There're 5 chapters in this paper. Chapter 1 is an introduction. Here we make brief introduction of research topic, research method and innovation of this paper. Chapter2 is theoretical research. Firstly we introduce concepts related with FDI, and then review and comment on related theories as to our topic from the angle of utilizing FDI.Chapter 3 is introduction of EDI in Guangdong. Here we make careful analysis of industrial structure of EDI in Guangdong, and then probe into reasons why this structure forms. Chapter 4 is analysis of influence of FDI to Guangdong's industrial structure adjustment from 1990's. From comparative macro level we analyze the currency assembling effect, industrial structure change effect, industry competitiveness strengthening effect and foreign trade commodity structure improvement effect. From comparative micro level, we analyze the effects of FDI to Guangdong's three industry structure and its inner trades. Chapter 5 is the conclusion of this paper and some points need improvements.