A Study On The Effect Of FDI On The Structural Upgrading Of The Manufacturing Industry In Shaanxi

In recent years, with the development and opening of ShaanXi Provincial economic,foreign direct investment in ShaanXi growing rapidly. ShaanXi province as an importantmember of the northwest old industrial base，its manufacturing industry has a good foundationand advantage to accept the international industrial chain transfer. In ShaanXi province, nearly60%of FDI flows into manufacturing sector, FDI make an important impact on manufacturingstructure.This paper focus on analyzes the development of FDI in manufacturing of ShaanXiProvince under the basis of FDI and industry restructuring theories. Then deeply analyze theeffect of FDI on manufacturing structure with normative analysis and empirical analysis. Thefinally part is policy recommendations on the improvement of technology spillover effect ofFDI. We should promote the development of high-tech manufacturing，optimize the qualityand sources of FDI， expand high-tech manufacturing industrial clusters，improve themanufacturing R&D capabilities to induce technology spillovers of FDI and to furtherpromote the optimization and upgrading of the manufacturing structure.The results show that，foreign direct investment has played a catalytic role in upgradingthe manufacturing sector in Shaanxi Province，and this technology spillovers in light andtextile industry and resource processing industry is more obvious. On the whole，however，thistechnology spillover effect is relatively small. Therefore，Shaanxi Province has to furtherimprove the efficiency of FDI and promote the optimization and upgrading of ShaanxiProvince manufacturing structure.