The Impact Of FDI On The Optimization Of China's Industrial Structure

The law of the People's Republic of China on foreign investment was passed by vote at the second session of the 13 th National People's Congress on March 15,2019.On December 12 of the same year,the 74 th executive meeting of the state council adopted the regulations on the implementation of the law of the People's Republic of China on foreign investment,which will come into force on January 1,2020.This shows China's determination to further open to the outside world and to use laws and regulations to strengthen investment protection and promotion.At the same time,in December 2019,the outline of the Yangtze river delta regional integration development plan was issued,which clearly pointed out that the upgrading of the industrial structure and economic growth of the Yangtze river delta region should be promoted through market balance and good policy guidance.Can foreign investment promote the upgrading of China's industrial structure?And through what path to affect the industrial structure upgrade?Under the current background,the study of these problems still has important theoretical and practical significance.Starting from the background of economic development,this paper expounds the significance of FDI to the optimization of China's industrial structure.And based on the theoretical research scholars athome and abroad,through the introduction of the present situation of FDI and domestic industrial structure,its practical significance is the qualitative analysis,using inductive statistics method,empirical analysis method,shows that FDI has great significance to the upgrade of industrial structure in China,and expounds the influence of FDI on the domestic industrial structure optimization mechanism.Then,by introducing the spatial econometric model and explaining the Moran index and spatial weight,the model was established with FDI as the main variable,the degree of openness to the outside world,residents' consumption and government functions as control variables,and R&D investment and fixed asset investment as intermediary variables.Through theoretical analysis and empirical analysis,the following conclusions are drawn:(1)The distribution of FDI among provinces has a significant positive spatial correlation;In addition,FDI has significant local spatial autocorrelation in eastern regions such as guangdong,jiangsu and shandong.(2)FDI can promote the upgrading of industrial structure and the rationalization of industrial structure,which has a significant positive effect;(3)Among the factors influencing the optimization of industrial structure,the degree of opening to the outside world and government functions have a significant positive effect on the rationalization of industrial structure;(4)In addition to direct effects,r&d investment and fixed asset investment,as intermediary variables,play a significant positive mediating role in the impact of fdi on industrial structure optimization.