Fdi To Upgrade The Industrial Structure Affect The Empirical Analysis

After 30 years of reform and opening up, China is gradually integrating into the world economic system. Foreign direct investment has become an important factor to support China's national economy. At present, China's utilization of foreign investment is at a new stage, we should further make effective use of foreign investment to promote sustainable development of China's national economy, and to promote China's relevant industries and technological progress, and to upgrade of China's industrial structure.So far, studies on the relations between foreign direct investment and industrial structure are mostly from national level and covered a broad content, but only few studies are from local level. Even if there are some articles from the perspective of a small area, they are relatively fragmented and lack of a comprehension. Therefore, based upon relevant studies made previously, this paper on the central region of Jiangsu province is to systematically integrate comparative advantages with its actual situation and to propose some scientific suggestions for the future development of the central region of Jiangsu province.This study aims to find out a) What roles FDI actually played in the rapid development of industry and its competitiveness, and b) How we can make more effective use of FDI to upgrade industrial structure by studying investment and adjusting policies.Using time-series data to establish an econometric model, we analyzed how FDI contribute to the three industries in the central region of Jiangsu province. With FDI as explanatory variables, and the three major industries in the GDP proportion of variables to be explained, the Distributed-Lag Model was established, and made Koyck transformation, and then ordinary least-squares estimation.According to the results of the analysis, FDI contributed the most to changes in the secondary industry in the structure, followed by the third industry, and made the minimum contribution to the first industrial structure changes, or even a negative effect.Generally speaking, FDI optimized the three industrial output values and upgraded the industrial structure of the central region of Jiangsu province in the process of promoting economic development.