The Study Of Foreign Direct Investment Upgrating The Industrial Structure

International Direct Investment is an international capital flows, which can be carried out within the giobai allocation of resources and improve productivity. Since reforming and opening up, foreign direct investment in China's increase quickly. Until the end of2010, China's absorption of foreign direct investment are more than one trillion U.S. dollars. Large inflows of foreign direct investment not only promotes the development of labor-intensive industries, but also increases the capital-and technology-intensive industries more competitive. Foreign capital bring our country advanced technology and management experience, and promote China's economic structural adjustment. Foreign capital has had a positive impact on the adjustment of industrial structure in China has had a positive impact.In the "SHI ER WU" plan, which stresses the importance to promote industrial restructuring and upgrading, is to achieve economic growth pattern to achieve sustainable economic development of the important means and ways. At present, the three industries, disproportion, primary and secondary industry proportion is too high. Our country has a large gap between the developed countries.At present, China is at the key stage of the industrial structure adjustment. Positive and effective use of foreign direct investment in China's industrial structure adjustment will play an important role. However, in the irrational structure of China's foreign direct investment, foreign investment mainly concentrates in the secondary industry. In Secondary industry, foreign direct investment mainly concentrates in the manufacturing sector, especially labor-intensive industries. In the tertiary industry foreign invest mainly in real estate. Foreign investment structure of the irrational, to a certain extent, led to the irrational industrial structure in China. Analyzing how to promote foreign direct investment trends of China's industrial structure is of great practical significance.The study of "SHI ER WU" plan emphasizes adjustment of industrial structure as a background to foreign direct investment tend to optimize the industrial structure of the mechanism for the study. This paper first stage is the industrial structure of foreign direct investment impact on the literature review; then describes the current situation of China's industrial structure and foreign direct investment status. This paper analyze of foreign direct investment trends; On this basis, foreign direct investment trends obtain China's industrial structure optimization of the mechanism of action. The theoretical analysis, bases on time series analysis of foreign direct investment and industrial output value of China's three times the relationship between the analysis of foreign direct investment trends and the line Sang added value relationship. Empirical findings show:1foreign direct investment increasing promotes the value of the three industries;2, foreign direct investment and industrial output has a long-term stable equilibrium relationship;3, foreign direct investment tend influence the industrial structure;4, foreign direct investment foreign capital inflows tend result in a trap. Finally, the previous status quo analysis and empirical analysis of the text, based on the proposed use of foreign direct investment trends of the industrial structure adjustment proposals.