Study On The Relationship Between Fdi And Optimization & Upgrade Of Industrial Structure In Shandong

Shandong province obtains plenty of resources and cheap labor and its potential market is huge. With the expansion of the foreign investment and more perfect regulations, Shandong will be involved into the international trade. However, the most realistic issue nowadays we are facing is how the FDI will effect the adjustment of the industry structure. Undoubtedly, the study on the relationship between the FDI and industry structure is helpful to the effective action of the government and the firm in order to win in the later competition of the national economy.This paper is divided into six chapters:The first chapter is related to domestic and international research literature review. It introduces related theories and their meanings and simply illustrates the research routine, method and possible innovation of this paper.The second chapter is related to the relative conceptions. For example, FDI, industrial structure and evolve rules of industry structure, which is the base of later illustration.The third chapter analyses the impact of FDI on the industrial structure of host country theoretically, on the base of the research of effect of FDI on the industry structure.Chapter IV analyses the development of FDI in Shandong, the current situation and development trend. It lists several development steps and current situation of FDI and industrial structure in the thirty years since the policy of reformation and opening in Shandong. It also illustrates the composition of FDI in three industries.Chapter V shows the evaluating system of industrial structure and analyses the positive and negative impacts of using foreign investment on the industrial structure of Shandong by the way of Granger causality test.In the last chapter, the author gives the countermeasures and suggestions to use FDI more efficiently in order to adjust and optimize the industrial structure of Shandong.