Researche On The Impacts Of Japan’s Direct Investment On Eastern Region’s Industrial Structure

China’s econony has witnessed rapid development with brilliant achievements in economic construction since the policy of reform and opening up.As the forefront of this policy, eastern region experienced a higher speed and level of development than the national average and its industrial structure has constantly optimized and upgraded.Being a critical part of Foreign trade and economic cooperation,FDI plays an important role in our country’s economic construction. China and Japan are geographical neighbours and old partners in previous economic cooperation, moreover, Jjapan’s FDI in China makes up a significant percentage in China’s FDI.Eastern region,with superior conditons in every aspect,has become the target of Japan’s investment in China.Japan’s investment in China’s eastern region enormously boosts the region’s economic growth as well as the adjustment of industrial structure. There are few related domestic researches on the impacts of Japan’s direct investment on eastern region’s industrial structure.Most scholers’researches are from the perspective of the impacts of Japan’s direct investment on our country’s industrial structure. This paper analyzes impacts of Japan’s direct investment on eastern region’s industrial structure by share transfer method.After summerizing past researches, this paper investigates the menchanism of impacts of FDI on region’s industrial structure and introduces four methods of technology spillover.Finally, according to knowledge production function and transfer of share analysis, it emphasizes on buliding up a model testing impacts of Japan’s investment on industiral structure by empirical analysis,further,a fixed effect panel data model is utilized to test the impact of Japan’s direct investment brought about in provinces and cities from 1999 to 2008.The result indicates that Japan’s investment has greatly promoted the structure effect of economic growth in our country’s estern regoin, which is one of the forces fueling the high and harmonious development of industrial structure.Estern region is comparatively mature in utilization of japanese capital and accumulates plenty of experience,but problems still exsits.There is room for improvement in industrial structure adjustment and upgrading.The end of this paper puts forward related suggestions.