Comparative Study Of China And Japan's Foreign Direct Investment

In the 50-80 years of 20th century, Japan's industrial structure achieve rapid transformation upgrading in the interaction between internal forces and external forces as a country which preteritly undertaked Europe and the United States industrial, and its domestic economy got rapid development. As a large open country, Chinese industrial structure adjustment is entering a new period and stage of development. We should not just be limited to use domestic factors and the passively accept foreign investments to promote domestic industrial restructuring. We should go out to use foreign direct investment to promote domestic industrial structure's adjustment and optimization. Japan's experience is very worthy. In combination with Japanese industrial's transformation during the development of foreign direct investment to study China's foreign direct investment in this paper, having a strong practical significance to help us develop relevant policies.In the research of international capital flows in China's industrial structure adjustment, mostly are on how attracting foreign direct investment effects our domestic industrial restructuring.studies concerning the relationship between foreign direct investment in China and domestic industrial structure adjustment is relatively small. Moreover, existing studies are mainly analysis of the relationship between foreign direct investment and domestic industrial restructuring from the qualitative point of view, quantitative analysis are seldom touched. This paper compares China with Japan from the quantitative view in the aspect of industrial restructuring, in favor of borrowing the successful experience of Japan and prevents its negative lessons on the basis of the actual situation of our country.First of all, this paper sums up the relevant theories and empirical research in foreign direct investment and industrial structure adjustment as a theoretical basis of the whole paper. The specific discussion of this paper starts based on the existing theories. Then, this paper respectively sets forth the development status quo of the Chinese and Japanese foreign direct investment, on which, this paper makes a statement of and the relationship between the foreign direct investment and industrial restructuring adjustment. In the basis of analyzing the impact of foreign direct investment on industrial structure adjustment mechanism, this paper compare the different effects of Chinese and Japanese foreign direct investment on respective industrial structure adjustment by using econometrics theories and Eviews software. According to the above empirical analysis we come to a conclusion that the biggest difference between China and Japan is the direction and degree of impact of the second and tertiary industries on foreign direct investment.In particular, the second industry and foreign direct investment showed the opposite relationship, positive in Japan, negative in China. Finally, combining Chinese national conditions and Japanese experience this paper puts forward corresponding countermeasures and suggestions on the developing foreign direct investment and the optimizing industrial structure of China.