Analysis On The Influences Of FDI To Industrial Structure And Financial Stability In Guangdong

The large amount of Foreign Direct Investment (FDI) into Guangdong Province surely is a great drive of Guangdong economy. It promoted the optimized adjustment of Guangdong industrial structure. But through demonstration it is found that Guangdong FDI in a certain degree and spectrum has become a block to the improvement of native industrial structure and influenced native industrial security and financial stability. So continuing blindly absorbing foreign investment in the future would be a hidden trouble for Guangdong economic development and financial stability. Since native financial stability is ultimately determined by native industrial economy, only the benign circulation of financial system in economic development can be the foundation stone of native financial stability. The logic of this paper is through investigation of the status quo of Guangdong FDI analyzing its positive and negative effects to industrial structure, investigating its influences to industrial security and financial stability. This paper outlines the development and status quo of Guangdong FDI. The analysis of FDI impacts to industrial structure is from aspects of capital, structure, management and technology, and export etc. The analysis of FDI influences to industrial security is from aspects of capital, market share, foreign trade, and technology etc. The analysis of FDI influences to financial stability is from aspects of banking system, real estate, balance of payment, competition, and government regulation etc. Finally, the paper comes to some policy suggestions about making reasonable FDI industrial policy, perfecting the reform of financial system, establishing industrial presentiment mechanism, and intensifying regulation etc.