An Empirical Study Of FDI On The Impact Of Three Major Industries In Henan Province

With the further development of economic globalization and integration, theforeign direct investment that takes the multinational companies as the main body isplaying an important role in economic development. The Central Plains EconomicZone has risen to the height of national strategy, and along with our country opening tothe outside world gradually deepening, and then Henan has a significant advantage inthe process of carrying on the international industrial transfer. In order to the foreigndirect investment play its role and promote economic development in Henan, and it isnecessary to study FDI on the influence coefficient of three industry in Henan province,which will lay the foundation for reasonably guide foreign direct investment in future,and better use of FDI to adjust and optimize industrial structure in Henan Province.From above considerations, the author conducts an empirical analysis on theinfluence of FDI on three industries in Henan province, which based on the theoreticalanalysis through the combination of normative analysis and empirical analysis, andthen through constructs the distributed lags model and uses the relevant data about FDIand three industries in Henan province. This study shows that the lag effect for FDIwill make different influences on the current and lag periods of three industries inHenan province. But in general, the influences of FDI on second industry are morethan tertiary industry, and the tertiary industry are more than primary industry.Meanwhile, in order to rightly analyze the influence of FDI on three main industries inHenan Province, the author makes a comparative analysis on Shandong Province thatis both rich in agriculture. And the analysis confirmed that the influences of FDI onsecond industry in Shandong are less than Henan Province, but the influences onprimary industry and tertiary industry are better than that of Henan. Based on theempirical analysis, the author explains the experiences that absorbing direct foreigninvestment in foreign developed countries and the developed provinces in China. Atthe end, on the basis of the above analysis the author provides some advice for Henan’s investment policy in future, which from the perspectives of investmentenvironment, investment structure and explores and utilizes new ways for FDI.