Research On The Influence Of Two-way FDI On The Upgrading Of Industrial Structure In Shandong Province

In recent years,China's economy has developed rapidly.The scale of the use of foreign direct investment and foreign direct investment is getting enlarging.But in the process of rapid economic development,a series of problems have appeared,such as the unbalanced regional development,unreasonable industrial structure,resources shortage,environment pollution and so on.So the transformation of the mode of economic development and adjusting the industrial structure have become an imminent task that cannot be ignored.Shandong province has long maintained its dominant position in the pattern of national economic development by virtue of its superior geographical position and sufficient labor supply.But in recent years,due to the lack of new driving force,low economic efficiency and unreasonable industrial structure,Shandong's dominant position is gradually disappearing.Shandong province has fallen into the awkward situation of being chased by others,especially the gap with some southern provinces getting widening.From the perspective of Gross Domestic Product,the GDP gap between Shandong and Guangdong expanded from 376.649 billion Yuan in 2007 to 177.108 billion Yuan.The GDP gap between Shandong and Jiangsu has widened from 36.472 billion Yuan in 2007 to 1323.561 billion Yuan.In terms of per capita GDP,the gap between Shandong and Guangdong expanded from 5,344 Yuan in 2007 to 8,125 Yuan.The per capita GDP gap between Shandong and Jiangsu expanded from 6,121 Yuan in 2017 to 34,343 Yuan,which shows that Shandong province has gradually lost its dominant position in development in recent years.Secretary of Shandong provincial party committee secretary Liu Jiayi profoundly expounded the Shandong province to speed up the old and the new kinetic energy conversion is effectively.Shandong should comprehensively deepen the reform,focus on high quality development,concentrate on modernization advantage of industrial cluster,gradually form the new pattern of economic development dominated by the kinetic energy and achieve high quality and sustainable economic development in Shandong province.Factors affecting economic growth and industrial structure upgrade in Shandong province are various.And under the background of economic globalization,economic development in Shandong province also gradually integrates with the world.International direct investment has become the link between Shandong province and other countries.It can not only bring sufficient foreign capital,advanced technology and management experience through foreign direct investment,but also seek for foreign production resources,develop foreign consumer markets and promote the upgrading of regional industrial structure through outward foreign direct investment.Therefore,it is of great practical significance to analyze the influence of two-way FDI on the upgrading of industrial structure in Shandong province from both theoretical and empirical aspects,and to explore how Shandong province can develop effective policies to promote the optimization and upgrading of industrial structure and realize sustainable economic development under the condition of dual status of host country and investor country.Based on the analysis of economic development and industrial structure in Shandong province,this paper analyzes the influence of two-way FDI on the upgrading of industrial structure in Shandong province.Firstly,relevant research literature was reviewed to understand the methods and conclusions of the current academic research on the relationship between two-way FDI and industrial structure upgrading.Secondly,the scale,distribution and industrial structure of two-way FDI in Shandong province in recent years are reviewed and analyzed.Third,clarify the mechanism of two-way FDI on industrial structure upgrading from the theoretical level.Fourthly,after clarifying the specific action mechanism,empirical analysis was conducted on the relationship between two-way FDI and industrial structure upgrading in Shandong province by using the data from 2003 to 2017 of 17 prefecture-level cities in Shandong province,and the interaction item of two-way FDI was introduced into the model to investigate the influence of two-way FDI interaction on industrial structure upgrading in Shandong province.The results show that two-way FDI does play a positive role in the upgrading of industrial structure in Shandong province,and both of them have a u-shaped relationship with the upgrading of industrial structure,among which foreign direct investment plays a greater role in the upgrading of industrial structure in Shandong province.The two-way interaction coefficient of FDI is significantly negative.It shows that the bidirectional interaction of FDI does not promote the upgrading of industrial structure in Shandong province and it has opposite effect.Therefore,next Shandong should coordinate the relationship between "bring in" and "go out" strategies,pay attention to the optimal allocation and coordination of IFDI and OFDI and make the most of them.The level of scientific and technological innovation can greatly promote the upgrading of industrial structure in Shandong province.Finally,based on the above research conclusions and combined with the current macroeconomic background of Shandong province,this paper puts forward suggestions on strengthening the organic coordination and cooperation between foreign direct investment and foreign direct investment,attaching importance to scientific and technological innovation,formulating reasonable industrial development plans,and accelerating the upgrading of industrial structure in Shandong province.