Study On The Influence Of FDI On Optimization And Upgrading Of Industrial Structure In Northwest China

At present,China's economic development is in a critical period of "new normal" and "L" economic growth trend,and economic development is facing many obstacles.So the state put forward the "supply side structural reform" approach to deal with the downward pressure of the economy.The northwest region has realized the close combination of foreign direct investment with the labor market and the consumption market,and the economic development has been greatly improved,which has stimulated the rapid development of the regional economy,and the economic growth rate is in the forefront of the country.However,most industries in the northwest region are in the downstream of the industrial chain,and the industrial technology level is low,so it is necessary to carry out industrial structure upgrading to improve the quality of economic growth.The northwest region should make better use of the historical opportunity of The Belt and Road,and introduce foreign capital more effectively to promote industrial structure upgrading with its advantages of geographical advantages and comparative advantages.In the analysis of the effect of FDI on industrial structure upgrading mechanism,this paper summarizes and analyzes the evolution and current situation of foreign direct investment and industrial structure in Northwest china.On the basis of foreign direct investment to stimulate the path of industrial structure upgrading,this paper examines the foreign direct investment of capital formation effect and technology spillover effect.This paper empirically analyzes the mediating effect of capital formation and technology spillover on industrial structure upgrading in Northwest China and puts forward the policy suggestions for the use of FDI to promote industrial structure upgrading in Northwest China.The conclusions of this paper are as follows.First,foreign direct investment is an important way to promote regional industrial structure upgrading.The capital formation effect and technology spillover effect of foreign direct investment can effectively promote industrial structure upgrading in Northwest China.Second,the industrial development in Northwest China is still dominated by heavy industry,and the abilityof scientific research and innovation is gradually improving.Third,foreign direct investment has a positive effect on capital formation and technology spillover effect.Foreign direct investment has affected the increase of capital in Northwest China,and there is a long-term stable equilibrium relationship.Analysis of the technology spillover effect of foreign direct investment shows that foreign direct investment can effectively promote the improvement of technical progress in the northwest,and there is a long-term stable equilibrium relationship because of capital formation and technology spillover effect of foreign direct investment.Foreign direct investment has played an active role in the process of industrial structure upgrading in Northwest China through the mediating effect of capital formation and technology spillover.According to the empirical results,this paper from the improvement of the investment environment,preferential policies,construction of industrial layout,improve infrastructure construction,increase investment in scientific research and other aspects of the northwest region of the introduction of foreign direct investment to promote industrial structure upgrading strategy.