Study Of The Influence Of Foreign Direct Investment To The Industrial Structure Of Hunan

There has been a fast promotion of the integration in economy from Hunan to the world since 1990's. Hunan grasps the chance to import foreign direct investment which supports the development of economy strongly. The industrial structure of Hunan is basically developed and is undergoing periodic transformation because of the push of foreign direct investment. The import of advanced technology and foreign direct investment to Hunan in the open economic conditions provides a powerful support to the healthy development of Hunan economy. What influnce to Hunan industrial structure by foreign direct investment, and how foreign direct investment promotes the adjustment and optimization of Hunan industrial structure, under economic globalization, especially a newly industrial structure adjustment and optimization, are the major theses of this article.This paper reviews the theory of foreign direct investment and industrial structure, especially the frontier part on the investment by developing countries. Furthermore, the article analyzes generally the transmission mechanism of the effect of the foreign direct investment on industry structure adjustment. In addition, the development of foreign direct investment and the three industries in Hunan from 1983 to 2009 is statistically analyzed in the paper, which leads to the empirical research on the relationship between industry development and foreign investment in Hunan based on the premise of co-integration theory. The research shows that the quantity of foreign direct invest in Hunan increase quicklly, the target area distrubute widely, the source area expand constantly, and the structure optimize gradully. The research also shows that there is long-term stable synergy between foreign direct investment and proportion among the three industris, the change of the quantity of foreign direct investment leads to the change of the protortion in addition, and foreign direct investment promotes the adjustment and optimization of Hunan industrial structure. The research still shows that foreign direct investment in hunan accumulates the quantity of capital, promotes the rationalization but advance of industrial structure of hunan province. Finally, the article reaches that foreign direct investment has a profound inflence on the develop of Hunan economy, especially the promotion of the upgrade of industrial structure. In order to promote the upgrade of industrial structure, Hunan should take the advantage of policy such as central rise and new industrialization to attract foreign direct investment more actively, combining investment promotion with upgrade of industrial structure strongly.