Research On In The Transition Period Russia's FDI Impact On Industrial Structure

Since the early 1990 s,the disintegration of the Soviet Union,Russia entered the transition period.During this period,with the Russia integrating into the world economy,the inflow of foreign direct investment increases.FDI provides an important source of capital to Russia,and has a significant impact on Russia's industrial structure.This paper studies the relationship between Russia's FDI inflows and its industrial restructuring in the transition period.By analyzing the theory of FDI promoting the industrial structure,empirical test has been done basing on the data of Russia's industrial structure changing and the FDI.Finally,we draw the relevant conclusions.First,the theoretical analysis of this paper combined with the theory of Petty,Clark,Kuznets,Rostow,and the theory of FDI promoting the industrial structure,we can observe the development of one country's industrial structure,as well as the role of FDI in the process of industrial restructuring.Second,in the process of analyzing Russia's industrial structure changes,this article will divide the Russia's transition into three periods: 1991-1999 the features of industrial structure in Russia;2000-2007 the adjustment of industrial structure in Russia during;After the 2008 global financial crisis the Russia's Changes in industrial structure.Then,the paper observes the data of the proportion of FDI inflows in different industries,the feature of FDI is analyzed.Finally,empirical test between Russia's industrial structure changes and FDI has been done.Through this paper,we can prove Russia's FDI inflows contribute to the optimization and upgrading of industrial structure in the long run : the proportion of agricultural output decreases gradually and the proportion of service sector output increases;In the industrial interior,the proportion of extractive industries decreases,manufacturing has risen.Thus,FDI inflows has positive effects on Russia's industrial restructuring,guiding FDI inflows and adjusting the structure of FDI inflows will have an important role in a country's industrial restructuring.Therefore,we propose policy recommendations: we should focus on the quality of foreign investment,and guide the inflow of foreign capital to provide important support for our country's industrial structure adjustment.