The Influence Of Foreign Direct Investment And Knowledge Investment On The Homeland's Industrial Adjustment

Since the 1980s, foreign direct investment has been developing rapidly in the world scope. the fast growing of the stock and flow of Foreign direct investment, has played a great important role in homeland's economic development and investment adjustment of industrial structure, as a result, is paid more attention by the homeland. In addition, the input of education and R&D not only improve the level of homeland's technology, but also increase the number of homeland's talents, which enhance homeland's international competitiveness, and improve homeland domestic industrial structure condition. At present, to raise domestic technology level, including China, many developing countries are trying to expand their outward foreign direct investment scale. Through comparing between the selected developed countries and developing countries sample, this paper analyses the influence of foreign direct investment and intellectual support on industrial structure adjustment, and gives policy advice on the basement of empirical analysis.Based on the previous study of the influence of foreign direct investment on homeland's adjustment of industrial structure, this paper focuses on the theme of the influence of foreign direct investment and intellectual support on the adjustment of industrial structure from the developed countries and developing countries respectively. First of all, taking the largest developed countries (American) and the largest developing country (China) for example, this paper introduces the history of their foreign direct investment and the present situation; Second, using the method of individual countries sample regression analysis and panel data analysis, this paper tries to find the influence of foreign direct investment and intellectual support on homeland's industrial structure adjustment. Finally, we give the conclusion of this paper on the basement of comparing the two kinds of countries'empirical results.Through empirical analysis, the paper concludes that: (1) all selected sample's foreign direct investment and intellectual support has some influence on the homeland's adjustment of industrial structure. While, the developed countries'influence is stronger than the developing country's. No matter the regression analysis of individual countries, or in the empirical panel data model, this conclusion is confirmed. (2) Developed countries'foreign direct investment, intellectual support and industrial structure adjustment are effected by each other. While only the foreign direct investment of developing countries is industrial structure adjustment's reason. This conclusion suggests that the level of developed countries'foreign direct investment and intellectual support is higher than the developing countries'.