Research On The Impact Of Shanxi's Utilization Of FDI Quality On Industrial Transformation And Upgrading

Over the past 40 years of reform and opening up,despite the remarkable achievements of Shanxi 's economic development,the particularity of resource-based industries and the serious lag of traditional manufacturing industries in opening up to the outside world,and due to the slow improvement of the business environment,not only is the market competitiveness of the industry not strong enough,the industry is also not highly internationalized.The global industrial division and reorganization and the acceleration of China's industrial restructuring and upgrading,and the further opening up to the outside world,provide a rare opportunity for Shanxi Province as a resource-based economic transformation and development.Drawing on the experience of development in developed regions,using FDI is an effective way to improve the level of industrial development.Therefore,it is of great theoretical and practical significance to objectively evaluate the current situation of the use of foreign capital in Shanxi Province,combine with the direction of industrial development in Shanxi Province,reveal the relationship between the quality of FDI utilization and industrial transformation and upgrading in Shanxi Province,and seek to use FDI to promote the industrial transformation and upgrading of resource-based areas in Shanxi Province.Based on the analysis of the current situation of FDI utilization in Shanxi Province,this paper objectively analyzes the level of FDI quality utilization in Shanxi from four aspects of FDI technology level,profitability,management level and average scale,and further reveals the mechanism of using FDI quality on industrial transformation and upgrading.Through the derivation of theoretical models and the spillover effect of FDI quality on industrial transformation and upgrading,it is hypothesized that the improvement of FDI quality can promote industrial transformation and upgrading.Using panel data from 11 prefecture-level cities in Shanxi Province from 2007 to 2017,this article uses a fixed-effect model to make an empirical analysis of the impact of Shanxi province on the use of FDI quality comprehensive indicators and FDI quality four sub-indicators on industrial transformation and upgrading.The research results show that the comprehensive FDI quality indicators have a significant positive effect on theindustrial transformation and upgrading of Shanxi Province.After considering the regression of the four sub-indicators of FDI quality as explanatory variables,the results show that FDI profitability and FDI management level have a significant promotion effect on industrial transformation and upgrading,while FDI technical level and FDI average scale have no effect on industrial transformation and upgrading.From the perspective of control variables,excessive energy consumption will significantly inhibit industrial transformation and upgrading.In order to ensure the reliability of the empirical results,after passing the robustness test of the explanatory variable measurement method,the results obtained are consistent with the original conclusions.According to the results of theoretical analysis and empirical analysis,this article puts forward countermeasures and suggestions for promoting the industrial transformation and upgrading of resource-based areas in Shanxi Province by improving the use of FDI quality in terms of improving the path of using FDI quality,improving the local business environment,improving the technical level of foreign investment,profitability,management level and average scale,and reducing energy consumption.