The Industril Structure Research Of The Adjustment Of Foreign Capital Policy: Case Study Of Qingdao

Since the reform and opening up, the inflow of foreign capital has been playing anincreasingly important role in the economic development of our country, also in theadjustment of foreign capital policy. This paper tries to explore the adjustment of foreigncapital policy on the influence of industrial structure mechanism from theory, and theinfluence effect of foreign capital policy to the industrial reconstruction, in order to giveguidance and policy suggestions to the further upgrading in industrial structure.At first, this paper discusses on the theoretical basis of foreign capital policy and thetheory of industrial structure, including Flying Geese Paradigm, Life Cycle, Petty-Clarktheorem and so on. Second it reviewed the foreign capital policy that China has used inthe last30years, by history analysis method and the course of the adjustment of foreigncapital policy. It has divided the foreign policy into5stages: the stage of initialdevelopment（1979-1984）the stage of preliminary development (1985-1991), the stageof rapid development(1992-2000), the stage of stable development (2001-2006), the stageof adjustment and improvement (2007-now).Qingdao was selected as the sample. Based on the analysis on the industrial structureand the trajectory of the individual development within the three main industries inQingdao, this thesis in the first place takes a theoretical view about how the foreigncapital policy influences the industrial structure in Qingdao and the direct and indirectinfluences that the adjustment of the foreign capital policy has on the city’s industrialstructure. After all the analysis, it shows that the changes of the policy have brought aboutgreat changes onto the industrial structure in the past three decades. For example, thedistribution and the upgrade of the three main industries have come to an obviousacceleration. The optimization of the structure is happening every year which is in greataccordance with the general law in the evolution of the industries.After the theoretical analysis, the panel data model is adopted for a case study aboutthe influence on the industrial structure, where the actual amount of foreign capital usedfrom1999to2010and the industrial added value in the three main industries during thatperiod come to use for the data analysis. The conclusion is that the inflow of directforeign investment does have effect on all of the three main industries and contribute tothe adjustment of the industrial structure. To be more specific, one percentage increasefrom direct foreign investment results in0.3907percentage increase in the added value ofthe three industries; the stock of direct foreign investment influences the three main industries to different degrees and the fixed Influence coefficient of the three industries is-0.5086,0.0568,0.4518.Based on the above analysis and optimization of industrial structure, combined withthe current economic situation, there are still some problems in Chinese foreign capitalpolicy: changes in industrial structure of foreign investment is not large; local governmentset unrealistic policy for performance; industrial tilts and regional tilts are not good forthe adjustment of foreign capital policy. At last, it gives countermeasures and suggestionsto solve the problems. One, guide the direction of foreign capital correctly. Two, create agood investment environment. Three, make foreign capital policy based on the locallocation, and so on.