Research On Shanxi FDI And The Adjustment Of Industrial Structure

Combined with the continuing evolution of economic globalization, and thegrowing size of international capital flows, foreign direct investment has become anintegral part of our country’s economy. As an energy abundance (such as coal resources)province, and supposed with elated policies, the scale of foreign investment increasedyear by year. Strong foreign direct investment powerfully enhanced the development ofShanxi’s economy, laid a solid foundation for our province. However, the weakindustrial foundation, the outdated industry technology, and the in-coordinatedeconomic structure, make the foreign investment could not be fully utilized, even morebring some negative impact, which is harmful to rebuild the optimized industrialstructure of Shanxi. Therefore, how to constantly adjust the direction of the inflow offoreign capital, how to improve the quality of foreign investment to maximize thepositive effects of foreign investment, to avoid negative impact on the province’sindustrial restructuring, has become an important issue and looms ahead.Therefore, this article describes the detail of the industry structure in Shanxi,basically reviews the comprehensive analysis of the impact of FDI and the relationshipbetween industrial structure adjustments in Shanxi, which is the unreasonable increaseof FDI deviates Shanxi Industry structure. Econometric models quantify the deviation ofFDI on industrial restructuring resulting in Shanxi and the main factors restricting theuse of foreign direct investment for a more in-depth analysis. The conclusion of thearticle is that in order to use the foreign direct investment to adjust Shanxi industrialstructure, policy maker must improve the foreign investment environment, give full playto the role of foreign direct investment in the adjustment of industrial structure.