The Influence Of FDI On China's Upgrading Of Industrial Structure

It is a natural process for an economy to fulfill its industrial structure upgrading. But as to China, it seems to be pressing to accelerate this process, because China is now facing too many kinds of constrains, including resources, a great amount of people, environment and the more dependent to foreign market. China's upgrading of industrial structure is under the background of global economy integration, and FDI, being a kind of resources intermingling with capital, technology, management skills and many others soft resources, is now playing a very important role in China's economy, especially for the upgrading of industrial.Based on this condition, it could make sense to study the influence of FDI on China's upgrading of industrial structure, and I want to discuss this question from several points as below.Chapter one is a background of this research concerned with FDI, including China and foreign scholars; at the same time, the way to deal with this research in this dissertation is introduced.Chapter two introduced the mainstream economic theories about the upgrading of industrial structure. Based on this, I discussed the three presupposed conditions in mainstream theory: free market, technological progress, the demand's promotion to upgrading of industrial structure. As a system in boosting the upgrading of industrial structure, the function is quite different for any one of the three factors. At the same time, FDI accelerates the upgrading of industrial structure via those three factors.Chapter three is the key part of theory analysis, and the positive and negative effect of FDI on institutional change, technological progress, and consumptive structure will be discussed in this part. FDI can make an obvious impact to market efficiency by influencing the local government's efficiency; FDI can activate local enterprises'technological progress by spillover effects, demonstration effects and competitive effects; FDI can decrease the effects of consumptive structure on upgrading of industrial structure by widening the disparity of different areas. Chapter four will make empirical analysis about the influence of FDI on China's industrial structure, and the conclusion discussed above will be tested in this chapter.Chapter five is about the succinct conclusion and some policy strategies. Improving the efficiency of local government is the key factor in policy strategies; enterprises'R&D should be encouraged; private enterprises should be prompted in order to develop the western economy; dismissing the disparity of consumptive structure between different areas for the conveniences of upgrading of industrial structure.