Fdi Promotes Research In Shandong Province Manufacturing Industry Structure Upgrade

As the global economy goes into the low speed gear, the industrial structureface the context of new round of adjustment, manufacturing structure upgradingbecomes an important research topic of sustainable economic development. The12thFive-Year Plan of China’s economic and social development proposed therecommendations of improving the industry’s core competitiveness, transforming andupgrading the manufacturing industry. The upgrading of manufacturing structurebecomes an important task for China’s economic development. With the accelerationof capital flows, the size and quality of Foreign Direct Investment (FDI) continues toimprove, FDI has become an important force for promoting China’s economic growthand upgrading the manufacturing structure. Since China’s accession to WTO, nearly70%of FDI flows into manufacturing sector, FDI make an important impact onmanufacturing structure. As China’s major economy province, Shandong Provinceintroduce FDI actively with its virtue of strategic location and economic conditions,the size and quality of FDI has been greatly improved. The introduction of FDIpromoted the growth of total economic output of Shandong Province and was usefulto the adjustment of manufacturing structure. This paper hopes to play a reference forother province or the whole country through analyzing the FDI utilization ofShandong Province.This paper focus on analyzes the development of FDI in manufacturing ofShandong Province under the basis of FDI and industry restructuring theories. Thendeeply analyze the effect of FDI on manufacturing structure with normative analysisand empirical analysis.The results show that, Firstly, FDI promote manufacturing upgrading ofShandong Province. Secondly, the technology spillover effect of FDI is greater thanthe capital supply effect of FDI on Shandong manufacturing structure. Last, FDI hassignificant technology spillover effect on domestic manufacturing.Finally, I put forward measures for utilizing FDI to promote manufacturingupgrading on the basis of conclusion and problems of Shandong manufacturing. Weshould promote the development of high-tech manufacturing, optimize the quality andsources of FDI, expand industrial clusters, induce technology spillovers of FDI andimprove the manufacturing R&D capabilities etc.