Foreign Direct Investment In Research On The Influence Of The Upgrading Of Industrial Structure In Jiangsu Province

Along with economic globalization unceasingly thorough, foreign direct investment(FDI)will be a more prominent role in the upgrading of the industrial structure of host countries as a special capital.During the waves of today’s economic globalization, seize new round development opportunity to use FDI more positively and effectively and combine it with host countries’s industrial policies, lose no time to promote the optimization and upgrading of industrial structure,and that is the major issue which national and local governments must face.Jiangsu is one of the more rapidly developing of open economy provinces,and the amount of FDI has been ranked first for8years in the country since it was more than in Guangdong.While the foreign capital has brought in the capital and technology that are desperately needed during the growth process of Jiangsu economy,also has special and far-reaching effects in the optimization and upgrading of Jiangsu’s industrial structure. Meanwhile,Hongkong tops in the source of foreign investment and FDI is seriously unbalanced in the regional and industrial distribution have not only contributed to industrial and regional economic uneven development,but also affect the further industrial restructuring and upgrading.Based on the related theories of FDI and the industrial structure,this paper built the mechanism how FDI affect the industrial structure in view of the capital supply and technology spillover effect.On that basis,use granger causality test to grasp the correlation between FDI and the industrial structure of Jiangsu province.Then,establish a multi linear regression model to measure the contribution of FDI to three industrial’s GDP,and set up endogenous technology growth model to examine FDI to Jiangsu’s technology advancement.We can draw the following conclusion through the empirical research:1.There is a long-term equilibrium relationship between FDI and Jiangsu’s industrial structure,and FDI is one of the reasons to industrial structure upgrades.2.FDI promotes obviously to the upgrading of the industrial structure of Jiangsu in which FDI contributes the most to the output of the second industry,followed by the third industry,and makes the minimum contribution to the first industrial.3.the increase of relative productivity of foreign enterprises play the major role in technological progress of FDI,and there isn’t significantly positive technology spillover.On the basis of the current situation in Jiangsu province,and combining the analysis conclusion,the paper present guidance recommendations on how to use FDI better to promote industrial upgrading in Jiangsu,including improve the investment environment,strengthen investment ability;improve investment quality,optimize the industrial structure;harmonious regional policy to attract investment,achieve gradient transfer of foreign capital;guide the industrial direction of foreign investment,construct modern industrial system;give play to the spillover effect,promote technical progress.