The Correlation Analysis Between FDI And Industrial Structure Of The Pearl River Delta

Along with the quickened economic globalization and region integration, Foreign direct investment is playing an important role in the economic development and industry structure improvement. Pearl River Delta has been key areas in absorption of foreign investment from various countries as Guangdong province. It has reached a critical stage for Pearl River Delta to find out how to use FDI to optimize its own industrial structure and to make it play a better role in promoting economic development.The paper’s first chapter introduces the background, significance and the basis content and research methods. The second chapter is theoretical overview parts, introduces the theoretical basis of FDI and industrial structure. The third chapter analyzes the present situation of FDI and industrial structure of the Pearl River Delta. The forth chapter of the paper study the relationship between FDI and industrial structure from the perspective of empirical aspects, the way of empirical analysis is gray relational analysis method to calculate the degree of correlation between FDI and industry, when analyzing the regional industrial structure, we used Shift-Share model. The fifth part of the paper make policy recommendations to use FDI better to promote regional industrial restructuring according to the conclusions of the previous theoretical and empirical analysis.The final conclusion of this paper:FDI shows positive effects on optimizing the industrial structure of the three industries and promoting the optimization and upgrading of industrial structure. But the unequal distribution of FDI in industries and regions increases the difference of the three industry structure, so it is necessary to adjust the investment direction of FDI reasonably to optimize the industrial structure better.