Research On Direct Foreign Investment Of China And Adjustment Of Industry Structure

Industrial structure upgrade is an important task which China is faced with in the new century. We use the experience of developed country to promote homeland industrial structure upgrade by direct foreign investment for reference to see that direct foreign investment is a way to promote industrial structure upgrade which should not be slighting. The industrial selection of direct foreign invest plays an important role in the upgrade and optimize of industrial structure.This paper analyzes the adjustment impact of direct foreign investment to industrial structure of our country from both the positive and the negative aspects. Puts forward the problem existent currently based on the industrial distributing status of direct foreign invest of our country currently; presents the industrial selection standard of direct foreign investment; forecast the industry transfer of China by time series models; then calculate the comprehensive competence of the 28 industries and 12 indexes of manufacturing by mathematical statistics based on data of Statistical Yearbook of China 1999-2007, and rank them, obtain the result that which industries to transfer and makes out the corresponding suggestions.The results show that: there is a significantly negative correlation between the manufacturing change of proportion of our country and its direct foreign investment which show that the manufacturing change of proportion will bring its internalThe results show that the ratio of manufacturing sector in our country is a negatively significantly related with direct foreign investment, which indicate the change of the ratio of manufacturing sector will cause the direct foreign investment flow. Forecast the industry transfer of China which shows that the ratio of manufacturing sector will descend, so need to make relative policies of industrial structure adjustment. The results of comprehensive competitiveness of Chinese 28 manufacturing sub-sectors show that the raw chemical materials and chemical products manufacturing, the electron and communication equipment manufacturing industry, which are declining; the competitiveness of the common mechanism manufacturing, specific equipment manufacturing, electrical machinery manufacturing, electronic and telecommunication's equipment industry, rubber products also become weak obviously, so the paper suggests these sectors should transfer the manufacturing of its low- and mid-end products, increase the technology innovation, keep the manufacturing of its high-end products, and upgrade its R&D work to improve its competitiveness.The paper gives some suggestions about industrial structure adjustment, obtain the industries to transfer, hoping it will give some academic help for the government sectors in making relative policies.