A Study On The Impact Of FDI On Industrial Structure Of China

As our country is in the triple overlapping period of shifting economic growth,restructuring economic and absorbing policy stimulus in earlier stage,how to realize the industrial restructuring and upgrading has become a very important issue in the context when our country is pursuing de-capacity as as our highest priority.Meanwhile,as our country is more and more international,FDI(Foreign Direct Investment) has become one of the necessary conditons that facilitate economic growth and the key which has gerat influnce on industrial structure undoubtedly.How to make effective use of FDI to promote transformation and upgrading of the industrial structure in our country has become an important essue of economic growth.It's shown by theoretical studies and practices that FDI can produced a profound influence on the economic growth and industrial structure adjustment of the host country.This paper which is divided into five parts,studys the effect of FDI on the industrial structure based on previous theoretic and empirical studies.The first part which embarks from the research background and the significance of the effect of FDI on the industrial structure, gives a review of the the domestic and foreign literature related and representative literature studys of the theory of FDI and industrial structure,establishing the frame of whole paper.The secend part explans the positive and negative impact of FDI on industrial structure in our country. The positive effect contains dominant and recessive effect,including the rising output scale of second and third industries and percentages of labor force,the rising percentages of technology-intensive industry and industries with high added value,trade structure optimization and competitive effect,demonstration effect,technical spillover effect and correlation effect of FDI.And the negative effct includes exclusiveness,monopolization, discordance and short of absorptive capacity.The third part use descriptive statistics method to summary the features of FDI and industrial structure by analyzing the present situation of their own.The fourth part uses vector auto-regression model to explore the impact of FDI on three industrial output value structure and employment structure, suggesting FDI has significant correlation with the three industrial output value structure while it has little impact on the employmentstructural upgrading in the resault of that the levels of liquidity of fund is higher than that of labor force.The last part gives advice on how to make effective use of FDI to promote the industrial structure upgrading.That is in order to prompt the positive impact of FDI on industrial structure, it suggests that we should guide the invetment direction of FDI, improve the investment quality of FDI and optimize soft investment environment of FDI.