Analysis Of Effect Of Foreign Investment On Industry Structure Upgrading

The swarm of foreign investment is a remarkable characteristic of China's reform and open. However, as for how to take advantage of foreign investment to promote economic development, there is no uniform point of view in domestic academy. And systematical research on relations between taking advantage of foreign investment and industry structure upgrading also remains blank.This paper points out that China now is in the key point of the transformation from initial industrial stage to metaphase stage, so economic qualitative promotion can not occur just through the increase of produces, and industry structure upgrading becomes the main path of this transformation. Researches on immanent logistic relations between taking advantage of foreign investment and industry structure upgrading are meaningful for the realization of economic development goals in China. Based on these thoughts, this paper analyzes the internal mechanism between taking advantage of foreign and industry structure upgrading, puts forward favorable cycle system, and studies how to take advantageof foreign investment in order to upgrade industry structure.Main contents and innovations are listed as follows.1.Analyzes the relations between taking advantage of foreign investment and industry structure upgrading. Finding out that taking advantage of foreign investment has an effect on industry structure upgrading through capital and technology, this paper does researches from these two aspects.2.Researching the mechanism of taking advantage of foreign investment for industry structure upgrading, finding out that foreign investment makes resources collocation optimization at first, then improves demand structure, supply structure and foreign trading structure, and finally induces industry structure upgrading. During the research on circle model, this paper shows that taking advantage of foreign investment and industry structure upgrading presenting interactional, dynamic and screw logistic relations.3.From the point of inducing industry structure upgrading, this paper analyzes how to choose the foreign investment. The main points include moderate and best absorbing scope of foreign investment, FDI direction, and factor of FDI motivation.4.Comparing different instances of U.S.A., Japan and Korea, mainly in their ways and policies. Main conclusions include: in Japan, foreign currency loan is the main way, and FDI is strictly restricted; the mainmode of U.S.A. is financing through capital market; the prominent characteristic of Korea is borrowing. The common points of these countries are that they attach importance to holistic management of society environment, leading foreign investment direction, establishing foreign investment limit and providing foreign investment with national treatment.5.Ningbo is the object for special research. Making use of linearity regress model equation, this paper figures out foreign investment's contributing degree to industry structure upgrading in Ningbo. Finally, this paper makes some suggestions for taking advantage of foreign investment.