Research On The Effect Of FDI On Industrial Structure In Yangtze River Delta

FDI has become a very important factor to promote the development of industry in host country. From the beginning of the opening-up policy, China has already become one of the countries who absorb the most FDI in the world. FDI plays an important role in the optimization of industrial structure. However, the influence is different from one place to another in China. This paper takes the Yangtze River delta as the object,analyses the effect of FDI on the optimization of industrial structure,from the view of differences among Zhejiang,Jiangsu,and Shanghai,and makes suggestions how to maximize the effect in the end. The following research work has been done in this paper:1. Reviewing the existing results about FDI and development of industry in host country, discussing the strengths and weaknesses of the existing results and indicating that it provides not only theoretical tool and reference information but also space for further study for this paper.2. Analyzing the condition of industrial structure and FDI of Zhejiang, Jiangsu and Shanghai, indicating that the difference of Pillar industries makes the difference of FDI in industry and the formation of a different mode of development of Zhejiang, Jiangsu and Shanghai.3. Using the dates about FDI and GDP in three industries of Zhejiang, Jiangsu, and Shanghai to do empirical analysis, analyzing the empirical results and indicating that the effect of FDI on the optimization of industrial structure is different in Zhejiang, Jiangsu and Shanghai, which follows as: the first is Shanghai , the second is Jiangsu and the last is Zhejiang.4. Drawing on existing theory , importing some relevant factors to explain the results, including FDI total amount, FDI entry ways, FDI entry industries, the existent human capital level and FDI policies;5. Taking the new international and domestic situation faced by China during the use of FDI into account, and proposing that we should re-examine the role and status of multinational companies and its FDI in China's economy and China's self-development should be implemented as the strategic goal of attracting FDI to promote the growth and development of local business and industrial. As a result, suggestions are given from two aspects: policies of attracting investment and domestic corresponding policies.