Research On The Influence Of Foreign Direct Investment On The Upgrading Of Industrial Structure In Shandong Province

With the globalization of economy,the economic exchanges between China and foreign countries are increasing.In recent 30 years,the scale of foreign direct investment in Shandong Province has been increasing.In 2015,the actual utilization of foreign capital in Shandong Province accounted for 12.02% of the actual utilized foreign capital of China.Foreign direct investment not only bring capital,technology and advanced management concepts for Shandong Province,but also promote the upgrading of industrial structure.So it is necessary to study if foreign direct investment has effect on the upgrading of industrial structure,what and how much the effect is.Therefore,this article has launched a study on the impact of foreign direct investment on the upgrading of industrial structure in Shandong Province.In the past thirty years,foreign direct investment in China has changed rapidly and become an important part of China's economy.Foreign direct investment not only bring capital,advanced technology and modern management experience to the host country,but also promot it's economic growth,technological progress and industrial upgrading.From the international point of view,many developed countries,such as the United States,Japan,Germany had began to seek the transformation and upgrading of industrial structure.With the world's awareness of environmental protection,more and more countries pay attention to the development of low-carbon economy which put forward new requirements for the upgrading of the industrial structure of our country.During "thirteen" period,China will be dominated by the industry-oriented economy to the service-oriented economy,from the traditional industry-led economy to innovation-oriented economy.As an indispensable part of the eastern part of China,Shandong Province should take the lead in the important task of actively exploring the industrial structure adjustment and make a good demonstration for other provinces.Firstly,this paper combs the domestic and foreign related theory and literature research,including the definition and theory of foreign direct investment,industrial structure and industrial upgrading theory summary as well as the influence of foreign direct investment on the industrial structure of the relevant research.Then,it analyzes the current situation of Shandong province's utilization of foreign direct investment and industrial structure upgrading,and the problems existing in the utilization of foreign direct investment in Shandong province.Then this paper use the distribution lag model to analyze foreign direct investment to promote the upgrading of industrial structure in Shandong Province.The empirical study is carried out from the following two aspects: the upgrading of the three industries and the upgrading of the industry of the third industry.From the empirical results,the influence of foreign direct investment on Shandong Province's second industry is the largest,followed by the third industry,the last is the first industry and but it has a positive correlation,the contribution of foreign direct investment on the traditional service industry in Shandong Province is greater than the contribution of modern service industry in Shandong Province.The main reason is the third internal industrial structure is not reasonable in Shandong province and the foreign investment in modern service industry is not good enough.Finally,based on the analysis of the existing problems in the third chapter and the results of the empirical analysis of the fifth chapter,the paper puts forward some policy suggestions on the use of foreign direct investment to promote the upgrading of industrial structure in Shandong province.