The Impact Of Upgrading Of The Industrial Structure On The Foreign Direct Investment

Since the reform and opening to the outside world, the Foreign Direct Investment Utilization(FDI) has always been an important strategy in the process of economic deveploment. Through the input of foreign capital, introduction of advanced technology and application of the managerial model, it promotes our nation's adjustment and upgrading of industrial structure in a direct or indirect way.On the other hand, the deveploment of important industry and the upgrading of industial structure, to a great extent, affects the size, structure, and efficiency of FDI. The process of upgrading the industrial structure is also the transfer process of industry economic development's emphasis or the industrial structure's focus, which deeply reflect the upgrading of social demand, the optimal allocation of resources, technological progress and economic system changes, which further affect the size, structure and benefite of foreign direct investment.Based on the analysis of the general characteristics and overall distribution of FDI during more than 20 years after the reform and opening up, the transition and it's reasons of FDI and the overall industrial structure are studyed by using the historical analytical method. Through using various parts of the country and upgrading the industrial structure of the data, the paper analyst the impact and the way of the various industries on the use of foreign direct investment by using the analysis of the model. On the basis of the former analysis, the paper discolses the impact mechanism of industry development and upgrading of the industrial structure on the FDI. Finally, many associated policy recommendations on China's continued upgrading of the industrial structure and the use of foreign direct investment are given.In this paper, the study shown that:in the industrial structure, the second industry and the third industry have a significantly impact of foreign direct investment. Within the second industrial structure: mining industry, chemical industry, metal mineral products industry; machinery and equipment manufacturing; construction industry; other manufacturing sector have a significantly impact of foreign direct investment. In the third industrial structure, the wholesale and retail trade, catering industry; transportation and warehousing; scientific research and integrated technical services; state organs, organs of political parties and social groups; finance and insurance industry; education, culture, arts and broadcasting, film and television industry have a significantly impact of foreign direct investment.