The Influence Of Foreign Direct Investment On China's Industrial Structure

After the entrance to WTO, China utilizes foreign direct investment more positively .At the same time, a large-scale regulation of the economics structure is rising in the world, so it is important to change the strategy of utilizing foreign direct investment. A new strategy should base on regulation of industrial structure, widen the field of utilizing foreign direct investment, and improve the structure and quality of making use of foreign direct investment.Though the industrial structure of our country has been improved greatly during recent years, there are a lot of conflicts existing among the industries, which will hinder the long-term development of our country. Foreign direct investment holds a big rate in the whole investment of our country, so it is very important to the improvement of our country's industry structure. How to realize the influence of FDI on Chinese industrial structure? As a serious problem it has been presented before us.Based on the theoretical analyses and a review of the process and actuality of utilizing FDI, this author analyses the industrial compositions of FDI in China and the influence of FDI on Chinese industrial structure, then introduces the empirical analysis of the FDI's influence on the industrial structure. The author investigates the accumulative distribution of the FDI in the three industries, and launches regression and causality analysis on the relationship between FDI's distribution and the structure of the three industries. In the case of the industry, which is most affected by FDI, investigations are made to classify the different influence of FDI on the Light and Heavy industries. At last, the author combines the trend of industrial structure regulations in the future, brings forward her counter-suggestions.