The Empirical Research Of Foreign Direct Investment’s Impact On Chinese Industrial Structure’s Upgrading

With rapid and sustainable development of China’s economic, foreign directinvestment is also growing fastly in China. The Foreign direct investment has becomea share of unignore power, of which the status is also enhancing continually in China’snational economy. Today, economic openness is more and more high.As an open anddeveloping country, China can not only be confined to the use of domestic factors topromote the upgrading of the industrial structure.Because a country’s the upgrading ofthe industrial structure should not only depend on the internal power drive, but alsoexternal factors are important, we must make a reasonable use of foreign directinvestment to promote the upgrading of industrial structure in China.This paper carries on the analysis and the research, linking the foreign directinvestment and the upgrading of the industrial structure.Study the relationshipbetween foreign direct investment and the upgrading of the industrial structure inChina, respectively from the following three aspects: Firstly, use econometric modelto analyze the overall effect of foreign direct investment on the industrial structureadjustment; And then, use the unit root test, cointegration test and granger causality toanalyze influence to the adjustment of industrial structure of our country through thetechnological progress of the foreign direct investment; Finally, with the relevanttheory of the gray correlation, analyze influence to the adjustment of industrialstructure of our country through the industry association of the foreign directinvestment.Through an empirical research, we get the following results: Since reforming andopening, the contribution of second industrial added value has been actually higherthan the first industrial in China through foreign direct investment,and thecontribution of the tertiary industry is minimum; Foreign direct investment raise thelevel of technology in China.The cointegration test results shows that the foreigndirect investment and technology progress is not a co-integration relationship,sorelationship between the introduction of foreign direct investment and technologyprogress is no long-term stabile trend of the common development in ourcountry.That means that foreign direct investment can’t enduringly promote to raisethe level of technology in China.The analysis of the granger causality indicate thatthe technology level and foreign direct investment is one-way causality, so directforeign investment can increase technical standards in China.But raising the level oftechnology of our country can not make more and more foreign direct investment toChina;The grey relation analysis theory indicates that foreign direct investment andfarming,forest industry is most associated, in the first, second, the tertiary industry inour country, The correlation in real estate industry and other industry is the second inour country, the connection of transportation telecommunications and extractiveindustries is the minimum.In view of the above problems, the article puts forward the following policysuggestions to promote the upgrading of the industrial structure through introducingforeign direct investment: Firstly, promote the three industry structure rationalizationof our country continually; Secondly,reinforce the adjustment of industrial structureconstantly through technology innovation; Thirdly,improve the correlation degreebetween the foreign direct investment and related industries, and promote theupgrading of industrial structure in China.