Industrial Structure Effect Of Foreign Direct Investment And Economic Development

Our country is facing with extensive economy growth bottleneck restrictions andurgently needs through the optimization of the industrial structure to promote the benigndevelopment of the economy, but at present our country industrial structure upgrading ismainly the government through industrial policy, credit policy intervention in the marketmeans to promote them. On the other hand the foreign direct investment to the economicdevelopment of our country especially the developed eastern regions has a strong influenceand driving force, so does foreign direct investment of foreign capital utilizing relativelyfew western the industrial structure of the area also has distinct effect? If there issignificant effect, then can we by selective introduction of foreign direct investment toachieve the upgrading of the industrial structure and enhance the potential GDP growth? Itis just what that this paper tries to answer.Prior to this, China’s foreign direct investment and industrial structure research is mainlyfocusing on the relationship between empirical and samples, mainly from the country orthe eastern developed regions. On the one hand from foreign direct investment the smallerWestern, check the right western influence of industrial structure, on the other hand,basing on the above conclusions, we attempt by assuming that the upgrading of theindustrial structure to optimize the economic growth potential, in order to study thewestern economic growth may exist in the foreign direct investment and optimization ofindustry structure. Therefore the article with western economy relatively develop, datacomplete Chongqing as an object, from1990-2010data as samples, using the panel datamodel to test the foreign direct investment on the industrial structure of Chongqing theeffect, empirical showed that foreign direct investment on the industrial structure has asignificant impact on the first industry, which has less influence on the second, threeindustry influence. Next, based on the empirical conclusion to establish static randomplanning model, in order to inspect the upgrading of the industrial structure of the potentialeconomic growth. The results show that, the optimization of the industrial structure on theeconomic development has the obvious effect. Therefore, through the empirical model andmathematical model of general conclusion: Chongqing through the selective introductionof foreign direct investment to optimize the industrial structure, and basing on this we canget higher output and also can reduce energy consumption and pollution, that is theeconomic growth of foreign direct investment in the upgrading of industrial structure.According to the conclusions of the model combined with the development ofChongqing basic situation, this paper suggested: selectively attraction, guiding the direction of investment; strengthening traditional industry industry orientation; enhancingregional absorption capacity, strengthening industrial technology policy and human capitalpolicy suggestions.