Study Of Foreign Direct Investment And Industrial Structure Deviation

During the past several years Suzhou has become the most developed area of foreign direct investment among Yangtze Delta. Along with the accelerating scale of foreign direct investment, the deviation of industrial structure in suzhou has been accelerated. The analytical results show that there has been an obvious incline for foreigners to invest in Suzhou, which leads to structural unbalance of investment. This has become a vital reason for excessive expansion of industry in Suzhou as well as laggard development of the third industry. And it gives rise to tortuous effect on Suzhou's industrial structure and makes Suzhou's industrial structure seriously deviate. Therefor, how to make better use of FDI to adjust and optimize industrial structure so as to obtain benefit is an urgent problem which should be solved at once during the process of FDI.However ,at present, systematical research on relations between foreign direct investment and industrial structure deviation also remains blank. Based on these thoughts,this paper takes Suzhou as an example, and mainly investigates the problem of industrial structure deviation caused by foreign direct investment. There are six parts in this paper. Chapter one is proem. Chapter two establishes a basic frame by which we can analyze the relation between FDI and the industrial structure of the host country. After reviewing some related theories, chapter two analyzes the adjustment impact on industrial structure for FDI. With great deal of data, chapter three introduces the integral situation of FDI and evolvement of industrial structure, then, analyze the relations between them. Basing on the theoretical analysis, chapter four makes a quantitative analysis of the adjustment impact on industrial structure for FDI, and finds out the long-term relations between them. Chapter five mainly measures the deviation value of industrial structure caused by FDI. Finally,on the base of the analysis, with Suzhou's actual situation, this paper proposes some suggestions to make better use of FDI to adjust and optimize industrial structure.