Foreign Direct Investment In Research On Effect Of Industrial Structure Adjustment Of Guangxi

Since the reform and opening up, China, with its huge market potential and Soft and hard investment environment improving day by day, attracts a large number of FDI. As an important economy region in the Southwest part of China, with the establishing of the China-ASEAN Free Trade Area, the FDI scale of Guangxi has also been rapidly developed. The role played by FDI in Guangxi’s economic operation is becoming more important than ever. FDI bring a large number of funds, the relevant experience and technology for Guangxi’s industrial developments, which have a major impact on the adjustment of industrial structure. Meanwhile, due to the disequilibrium foreign investment in different industries, each industry in Guangxi had a different adjustment effects, thus resulting in some industrial structure deviations and has brought some negative effects on upgrading industrial structure in Guangxi. Therefore, this article intends to study effects on the Adjustment of Industrial Structure caused by FDI, give reasonable guidance to the direction of investment in various industries, eliminate the negative effects of foreign investors in the industrial structure adjustment, and make good use of foreign investment to improve the industrial structure adjustment and optimization.This paper research the relationship between FDI and the Adjustment of Industrial Structure which is based on a combination of theoretical and empirical research methods. The first part summarized and analyzed the development of FDI and industrial structure adjustment theory, then describes the status of Guangxi FDI and industrial structure, and its problems. Secondly we use the Distributed-Lag Model (DLM) and then through the establishment of time interval1990to2010, Guangxi’s industrial structure adjustment effect caused by FDI, followed by the introduction of the C-D production function estimates1995-2010, Guangxi’s industrial structure adjustment deviation caused by FDI. Based on the above analysis, to draw the main conclusions of this study:because of the structural tilt in FDI distribution between the three major industries, the effects of industrial structure adjustment are different, but greatly contribute to the development of secondary industry, slow down growth of the tertiary industry, while inhibition of primary industry development, thereby expanding the gap between the three major industries. Finally, according to Guangxi’s actual situation and its own characteristics, propose policies and proposals on how to use foreign investment to promote the optimization of industrial structure adjustment.