| Along with the constant expansion of investment, the government has transformed from "quantity" to "quality" on attracting foreign investment, and is guiding foreign investment into infrastructure industries, high-tech industries and emerging industries, so as to promoting the industrial structure. But the effect on industrial structure may be little even though the foreign investment policy has adjusted. This is the problem that society is paying close attention to nowadays.The article reviews the process of China’s industrial structure adjustment and investment policy evolution, and discusses the effect of FDI policy to industrial structure, following comparative change of industry structure development situation, by a large amount of data of FDI in development scale and the distribution in industry structure. Investment policy through industry correlation effect influence upstream supply and demand effected by intermediate product market, improve downstream production technology and lower its production costs, driving the upgrading of industrial structure by industry chain reaction. Empirical tests check the effect of size and period using the 1987 to 2013 data by VAR model and VEC model. Result displays a different influence on three industries.<Catalogue for the guidance of foreign investment industries> has significant positive effects on primary industry added value long-term, negative effects on secondary industry shown in the long term, and the short-term positive but not significant effect on tertiary industry; tax cuts for the industrial structure is positively impact long-term, but it has short-term effect on primary industry; opening is beneficial long-term for three industries. On the basis of these theoretical and empirical analyses, the article puts forward several proposals for more reasonable foreign investment policy adjustment and more effective optimizing and upgrading the industrial structure. |
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