Research On The Impact Of Jiangsu's Foreign Direct Investment On Industrial Structure

With the gradual acceleration of economic globalization, economic ties between countries are increasingly close, outward foreign direct investment has become an important engine of world economic development. Since the reform and opening up,outward foreign direct investment of Jiangsu province began to enter a high-speed development stage, at the same time, its industrial structure also showed an escalating trend, whether it contains inherent association in this seemingly different economic phenomena? Whether does the outward foreign direct investment of Jiangsu province support its industrial structure upgrading in the past few decades? This far-reaching significance for Jiangsu province which urgently needs to realize the transformation of foreign trade and industrial structure. In the current, the rising cost of raw material,laborer and energy makes Jiangsu's traditional industry gradually lost the advantages,whether can Jiangsu transfer the traditional industry, dissolve excess capacity,developing high-tech industry and further promote the upgrading of industrial structure by OFDI like Japan, the United States and other developed countries is a topic worthy of further study.Firstly,this paper made an introduction of previous studies on this topic and summarize three motives of a country's OFDI, in addition, combined with the influence factors of the industrial structure, it analyzes the mechanism of market seeking, resource-seeking and strategic asset-seeking OFDI affecting the industrial structure. In conclusion:three types of OFDI is mainly affecting the home country's international trade, domestic investment, technical level, production efficiency and consumer demand, thereby affecting the industrial structure by different transmission mechanism in varying degrees.Secondly, this paper makes a detailed analysis on the characteristics of Jiangsu's OFDI , such as the process, scale, industrial distribution and regional change and so on. in conclusion: Jiangsu's OFDI is mainly invested by private enterprises, its investment area is mainly concentrated in Asia, its investment industry is mainly distributed in the less-skilled labor-intensive manufacturing industry and traditional service industry; At the same time,it also makes a concrete analysis on the current situation of Jiangsu's industrial structure and the environment and conditions for optimization and upgrading of industrial structure. It is pointed out that although there are still some problems exist in the internal structure of Jiangsu's industry, but on the whole, the level of Jiangsu's industrial structure is gradually increasing improved.Thirdly, This paper makes an empirical study on the influence of the scale and industrial distribution of Jiangsu's OFDI on the industrial structure by establishing regression model and gray correlation model respectively. The results show that Jiangsu's OFDI has a positive influence on the upgrading of industrial structure, and it mainly promotes the upgrading of industrial structure through three paths: export scale, domestic investment and technical level; In addition, the degree of the influence that different industries of OFDI to Jiangsu's industrial structure is different, for example, information transmission, computer services and software industry,construction, manufacturing, scientific research, technical services and geological prospecting and other industries have a greater influence on the industrial structure.Finally, according to the conclusion of the study, current situation of OFDI and characteristics of the industry in Jiangsu, this paper puts forward the corresponding policy recommendations from the perspective of policy and the enterprise to further promote the positive influence of OFDI to Jiangsu's industrial structure.