Analysis Of FDI Effect On Industry In Jiangsu Province

In the development of a country or district, the orientation of economic formation change style is crucial to economic growth, while industry formation is the critical in the whole industry formation. Professor Zhibiao Liu thought "The core character of the high level industry formation is the high level of industry formation. Economist Carl of America also thought the high speed of economy growth is always connected with the high speed of manufacture growth, which is the character in the middle of the development. Manufacture is the original driving force of economic development and growth.From the set up of Chinese JiangNan Red Sea Wood L.T.D -the first foreign capital company in Jiangsu province, in 1981, project of FDI, availed foreign capital in contract and actual availed foreign capital increased in a high extend. The origin nation of foreign capital and the investment of profession became plentiful. See from the invest technology; it branches from general procession project to high additional value project. FDI drives Jiangsu economic growth actively.In my article, first, I retrospect the theory of FDI and the process usage of FDI in Jiangsu province. Then, I analyze the affection in Jiangsu properties by analyzing the affection in industry scale, structure of FDI. I found that foreign capitals from HongKong, Macao and Formasa have the character of high intensive labor and obviously productivity affection. But, the technical content of HongKong capital, Macao capital or Taiwan capital company are less than foreign capital company. The denotation of those three capitals is not equal to foreign capital.Under the background of international industry division and adjustment, it has positive meaning of exploiting FDI sensible, pushing local economic growth forward and perfecting industry structure. Being careful of the local economic strategy, improving the quality of FDI, being sure the serve of FDI for local economic strategy are all sensible to Jiangsu aftertime development as well as advancing national company by manifold development policies and advocating autonomic innovation.