Empirical Study Of International Industrial Transfer Based On FDI

Since the reform and opening up, with the gradually increasing openness, China’s policy on a number of industries has gradually liberalized limits. The arrival of the international industrial transfer should influence China’s economic development. A main measure of economic development is industry structure optimization. Industrial structure from junior to senior development means that a country’s economy is in the healthy development. Foreign direct investment as the main form of international industry transfer is the main indicators for the study. This paper introduces the development of international industry transfer based on FDI in China and Shanghai. The international industrial transfer based on FDI has a certain impact on the industrial structure.The paper first reviews the theories of international industrial transfer based on FDI to the industrial structure, then it analyzes the mechanism of international industrial transfer to the industrial structure, laying a theoretical foundation for this discussion. Then it analyzes the international industrial transfer based on FDI. It Introduces the backgrounds motivation and stage of the development of the international industrial transfer. Also, it introduces the current situation in China of international industrial transfer based on FDI. It shows the development of international industrial transfer based on FDI is good. Foreign direct investment is mainly concentrated in the manufacturing of the secondary industry. The service sectors become the new hot spot for foreign direct investment. And then it discusses the influence of international industrial transfer based on FDI to China’s industrial structure. At first, it analyzes the structure of our country industry at overall level. The research of industrial structure is mainly about the primary, secondary and tertiary industries proportion in GDP and changes. It proposes the unreasonable problem of China’s industrial structure. Then it analyzes the change of foreign direct investment in the dynamic development of the three industries from1985to2007, and the distribution in the three industries. Then, it builds model, and analyzes the impact of foreign direct investment to the value added in the three industries. If the input of foreign direct investment increases an industry’s output value, foreign direct investment to a region’s industrial structure is positive. The next part of the paper analyzes the impact of the international industrial transfer based on FDI to Shanghai’s industrial structure. First it analyzes the development of Shanghai’s industrial structure. Then it analyzes the development of the use of foreign direct investment and the trend of its development in Shanghai from1981to2007. It describes the status of the use of foreign direct investment in the three industries of Shanghai. It shows the characteristics of foreign direct investment in Shanghai in two ways. On one hand, it analyzes the distribution of foreign direct investment in the three industries. On the other hand, it analyzes the foreign direct investment in Shanghai from which countries. It still uses the previously used model for analysis of the influence of foreign direct investment to Shanghai three industrial structures. Based on the above analysis, it sums up the positive impact of foreign direct investment to Shanghai’s industrial structure and the problems. It shows shanghai should use the foreign direct investment effective to promote Shanghai’s industrial structure optimization.Our country should seize the favorable situation, and actively undertake international industrial transfer to improve the soft environment for foreign direct investment in China. Also, we should stimulate the investment enthusiasm of foreign investors in China. We should increase China’s personnel training, introduce the foreign advanced technology, to learn and innovate the China’s industry to better use of foreign direct investment. We should help enterprises of our country, and provide services to create the conditions for the healthy development of enterprises in order to better use of foreign direct investment.