Research On The Influence Of FDI On The Industrial Structure In Jing-Jin-Ji Area

With the fast development of economic globalization and the increasingly deepening ofthe international division of labor, foreign direct investment is spreading worldwide, and it isguided by developed countries, dominated by multinationals with the essence of the globaleconomic integration. Foreign direct investment is playing an increasingly critical role in thedevelopment of world economy. Economic development not only means that the output risescontinually but also the industrial structure transforms upward. Industrial structure is the mainpart of economic structure, and therefore to upgrade the industrial structure is the essentialroute to propel modernization and upgrade the mode of economic development.Jing-Jin-Ji area is the third important area of economic growth in China, and hence itsdevelopment is quite significant to economic growth. Our government pays great attention toits development and put forward the strategy of Jing-Jin-Ji area in the late1990s. TheEleventh Five-Year Plan made Jing-Jin-Ji metropolis circle the trial point of regionaldevelopment. The Twelve Five-Year Plan came up with the idea of capital circle further, andbrought the strategic cooperation of Jing-Jin-Ji area into the national level.There is an urgent need for Jing-Jin-Ji area to open to the outside deeply, and makeefforts to upgrade the industrial structure through FDI. In the background of policy of openingto the outside world, it is significant to discuss how to promote the economic growth inJing-Jin-Ji area through the industry association effect and technological overflow effect ofFDI and make full use of the comparative advantage of the region. As a result, it is quiteurgent and crucial to study the influence of FDI on the industrial structure of Jing-Jin-Ji area.This paper concentrates on the influence of FDI on the industrial structure of Jing-Jin-Jiarea. It can be divided into five parts. Part one introduces the background, purpose andmeaning, object and ways of research, relative researches at home and board, the innovationand shortage. Part two is the general introduction. It introduces FDI and the basic theory ofindustrial structure. Part three is the present situation of the FDI and the industrial structure inJing-Jin-Ji area and analyses from three dimensions of FDI, industrial structure and thedistribution of FDI in the industrial structure in Jing-Jin-Ji area. Part four is the highlight ofthe whole paper, which analyses the influence of FDI on the industrial structure of Jing-Jin-Ji area with both qualitative analysis and quantitative analysis. From qualitative angel, it hasboth positive influence and negative influence of FDI on the industrial structure in Jing-Jin-Jiarea. The positive effects are as follows: upgrade its industrial structure, propel theindustrialization process, push forward the development of capital-intensive industry andtechnology-intensive industry, especially the manufacturing industry, promote thedevelopment of high and new technology industries and service industry. The negative effectsare as follows: the distribution of FDI in every industry is not reasonable, which restricts thecoordination of each sector in one industry. The amount of FDI is not balanced among thethree districts, which enlarges the gap among the three provinces. It also has some extrusioneffects to the enterprises at home. From quantitative angel, it has a long-term stabilityequilibrium relationship between the FDI and industrial structure in Jing-Jin-Ji area. FDImakes great contributions to the increase of the added value of the three industries，the changeof the amount of FDI is the reason why the industrial structure in Jing-Jin-Ji area transform.The second industry has a significant impact on the variation of FDI, and leads to itsfluctuations, and the fluctuations of FDI will result in the variation of added value of the thirdindustry. Part five gives suggestions on how to promote the upgrading of industrial structureof Jing-Jin-Ji area with FDI on the basis of the analysis above. Mainly there are foursuggestions: optimize the investment structure, guide the distribution of FDI, improve theinvestment environment, and establish regional industry cluster.