The Effect Of FDI On Industrial Structure In Gansu Province

Theoretical researches and economic practices show that FDI has special and far-reaching effects on the host country's economic development and structural adjustment. The introduction of FDI in China has acquired remarkable achievements, but the mechanisms and the effects of FDI acting on industrial structure adjustments in China especially in less developed provinces are debatable. Does FDI lead to changes in industrial structure? What is the effect on industrial structure from FDI? How does FDI affect industrial structure? These issues have become focuses of attention and hot points of research. The thesis attempts to choose underdeveloped Gansu Province as research object, and estimates the specific effects on industrial structure of FDI from two dimensions of value and proportion.The thesis first reviews the theories of FDI, the theories of industrial structure and the theories of the relationship between FDI and industrial structure, and points out the important role of industrial structure adjustments from FDI. In combing the existing empirical literatures on the existences and channels of the effect of FDI on industry structure, the thesis elaborates the mechanisms of FDI acting on industrial structure from blood transfusion effect, pressure effect and catalytic effect of FDI acting on capital formation, demonstration effect, correlation effect and competitive effect of FDI acting on technology spillover, training effect and cultural effect of FDI acting on knowledge supply, and proposes a general analytical framework of FDI affecting industrial structure. Then, the thesis examines the development process of industrial structure and FDI in Gansu Province, and analyzes the composition and the development trend of industrial structure and FDI structure. Finally, by using a linear regression model from the output level and a panel data model from the proportion, the thesis measures and analyzes the effects on industrial structure of Gansu Province from FDI and puts forward some thought. The thesis holds that both industrial structure and FDI structure of Gansu Province have a trend with overall increase and big fluctuation, and FDI makes important contributions to the optimization and upgrading of industrial structure in Gansu Province. From the production point of view, the entry of FDI promotes GDP of three industries to some extent. From the proportion point of view, the introduction of FDI makes an important contribution to the overall trend of slight decrease of primary industry proportion, slight increase of secondary industry proportion and slight increase of tertiary industry proportion. To improve further the quality and level of using foreign investment in Gansu Province and play a positive role in promoting technological innovation, industrial upgrading and economic development, we should try hard to improve investment environment, optimize incentive policies, enhance independent innovation and safeguard industrial safety.