Industrial Structure Adjustment And Foreign Capital Utilization In China

The thesis focuses on foreign capital, one of the factors that influence the industrial structure upgrading, to analyze the aggregate effect that foreign capital has upon host industrial structure upgrading and how to make good use of it, theoretically and empirically. This thesis is divided into four chapters.Chapter 1 and chapter 2 are part of the theory analysis—theory about industrial structure and theory about the correlation between foreign capital and host industrial structure. The main content of chapter 1 is about industry, the industry category, the law of industrial structure evolution, the adjustment of industrial structure and the restriction factors of it, and the upgrading of industrial structure. Chapter 2 is the source of the empirical analysis of this thesis. The positive correlation analysis is from the capital effect, the technology progress effect, the industry-driving effect, the direct improving effect of industrial structure, and the economy growth effect. The negative correlation includes the deflection of industrial structure, the control of the host industry, capital-formation, the capital escape, the safety of the natural resource, and so on. Nowadays, in a globalized world, it's impossible to upgrade host industrial structure without using foreign capital. The aggregate effect of foreign capital will be different in diverse occasion. As far as a developing country, the positive effect is larger than negative effect, mostly in capital and technology aspect. The authorities should take proper measures to lessen the negative effect and strengthen the positive, and get the optimal cost for domestic industrial structure upgrading,From chapter 3, this thesis changes into the empirical analysis, about the history course that our country makes use of foreign capital and the characteristics and problems. The positive correlation analysis of foreign capital and china is similar to the theoretical analysis in framework and arrangement. Since 1979, we have experienced "two-gap" period and "no-gap" period. Foreign capital does much to our industrial structure upgrading in the capital effect. And the technology effect lies in technology upgrading and the industry-driving effect, with the core of technology spill-over. Also, our industry structure is directly improved by foreign capital, throughthe direct choice from which industry to invest, the primary industry, the secondary industry or the tertiary industry, capital-intensive one or technology-intensive one, etc. These all attribute to economy growth, and upgrade our consumption structure and supply structure, by which the Chinese industrial structure has improved much.Chapter 4 demonstrates the status and the problems which foreign capital now has in our country. It accelerates the industrialization, but broadens the disparity of the three industries. And in the tertiary industry, most of the foreign capital invests in real estate, which will do less to upgrade the level of the tertiary industry. In some field, foreign capital controls the brand, market, and the technology criterion. Pollution is found in the secondary industry, caused by foreign capital. However there is no discrimination between foreign capital and domestic capital in this problem. In the market-oriented economy, monopoly will be unstable. The authorities should attach more importance to choice of the proper foreign capital to develop the certain industry we need, and promote the rationalization and the advance of the industry structure.The scale and developing speed of the foreign capital in our country and its control over certain industries, arouse so much attention that many people worry about the Latin Americanization. The thesis analyzes it, and draws a conclusion that it shouldn't be overcautious. When think about the cost and gain of utilizing foreign capital, there are some other problems that should be recognized, like the structure of foreign capital, the choice of foreign capital or domestic capital, the technology problem, and the new situation our country faces and so on.