Research On The Affection Of FDI On The Industrial Structure In Hebei Province

With the advancing of economical globalization and the further expansion of international labor division, International Direct Investment is developing unprecedented, and it has close relation with the economical development in the host country, they also depend on each other most. Nowdays, the function that FDI has on the industrial structure is rising to an unprecedented height, becoming a very important element that affect the industrial structure. These years, the scale and level that FDI in HeBei has expanded and rised more and more, FDI has improved the elevation of HeBei's industrial structrue in some extent; meanwhile it also has a lot of problems, so it has unavoided some negtive influnce on HeBei's industrial structrue.In this article, we apply the thory of FDI, the thory of industrial structrue progressing and the thory of the relationship in them. In the bases, we elaborate the devloping process, present situation, characterristics and the problems exsisted of FDI and industrial structrue in HeBei province respectively. In all, the scale and quality of FDI in HeBei province is expangding and rising more and more, but also has much gap with other costal provinces and cities; the industrial structrue in HeBei province is adjusting constangtly, in the same time, there are also problems, for example, lower levlel of products, lower optimization of the industrial structrue, lower competition power entirely. When mention to the distribution of FDI in HeBei province, the first industry account for a small part, while the second takes a leading role and the manufacturing occupies most. FDI of the third industry increases constantly but is still in a low level.Based on the study of these theories and analysis, we do the empirical analysis of the FDI's affection on the industrial structure. First, we do interrelation analysis on FDI and industrial structure, and conclude that FDI and ndustrial structure have obvious interrelation. Then, elaborating the FDI's affection on the industrial structure in HeBei province from the positive and negative angle, by caculating deviation index of industrial structure in HeBei, we find FDI prefer to the second industry and avoid the first and second. The last, using the regression analysis, we caculate the FDI's devotion degree to the industrial structure in HeBei province and conclude that FDI's devotion to the second industry is bigger than other elements, but the devotion to the fiest and the third industry is lower than oters.Therefore, combining with thories and empirical analysis, we could conclude that FDI has improved the elevation of the industrial structure in HeBei province to some extent, but it also has expanded the structure deviation and affected the development of HeBei's industrial structure. Then we raise the related policy suggestion.