Influences Of Utilizing FDI On Chinese Industrial Structure Upgrading

Since the reform and open policy initiated, Chinese industrial structure has been continuously improved and upgraded: the ratio of total industries has become more and more reasonable; the pillar industries show a visible tendency towards high capital intensity and high value-added development; In the past 20 years, Chinese industrial structure has experienced a great improvement. The reasons mainly lie on the economic system reform, and the utilization of foreign direct investment (FDI) in China. Among all these important factors, FDI has played an important role of engine directly and indirectly. It has not only directly promoted the upgrading of industrial structure, but also indirectly affected the overall economy of China to push and pull the upgrading of industrial structure. FDI has greatly bridged the gap of needs for constructing capitals. Moreover, the diversity of FDI has greatly promoted the native industrial development to a high level, shifting to capital and technology intensive industries.About FDI influences on Chinese industrial structure, many scholars have made deep researches from different angels and have achieved a lot. My research interest is to specialize in the transmission mechanism of FDI promoting Chinese industrial structure by empirical analysis.Chapter 1 summerized the related theories in FDI and industrial structure upgrading.Chapter 2 analyzed the distribution of FDI among and within three industries, and concluded out their characteristics respectively, and illustrated the effections of FDI on the upgrading of Chinese industrial structure.Chapter 3 demonstrated the effects of FDI on Chinese industrial structure from three angles, focusing on the contribution to three industries, the high processing and high value-adding tendency of industry section as well as the shifting of pillar industries, identifying the details of the transmission mechanism.In the fifth chapter, I concluded out the negative influences of FDI on Chinese industrial structure upgrading: technology spillover effect is weakened due to exitingbarriers set by FDI enterprises. Meanwhile, it has resulted in dependence on FDI for some industries. It is also believed that the goals of Chinese government to promote the first and the tertiary industry have not been acheieved to some extent.At the end of my thesis, I put forward some suggestions to Chinese government for better using FDI to promote Chinese industrial struture.