The Study Of The FDI That Influences To The Industrial Structure Of Henan Province

Along with the continuous deepening of reform and opening up andeconomic process of globalization accelerates, China is graduallyintegrating into the world economic system, foreign direct investment hasbecome an integral part of China’s economic. Henan Province as a centralprovince, the scale of the absorption and utilization of foreign directinvestment continues to expand, the level is also rising. Foreign directinvestment makes a contribution to Henan’s economic capital, technologyand management experience, to promote employment, an increase offiscal revenue. However, foreign direct investment has also brought somenegative impact on the changes in industrial structure of Henan. China isfaced with the task of optimizing and upgrading the industrial structure.As to Henan, how effective to use the foreign direct investment topromote the optimization and upgrading of industrial structure is animportant goal of economic reform and economic development. Thefocus of this study is the impact of foreign direct investment in thechange of Henan Province’s industrial structure. This paper’s researchingideas are this: First, it is to analyze the use of foreign direct investmentand the industrial structure of Henan, as well as the distribution of foreigndirect investment in the industry. Second, it is to empirically analyze theimpact of foreign direct investment in the structure of Henan’s industrialstructure. Finally, it is suggesting how effective use the foreign direct investment to promote the optimization of industrial structure of HenanProvince.According to the reaching ideas, this paper systematically introducesthe literature and theoretical studies of domestic and foreign scholars onthe relations of foreign direct investment and the structure of industry.Second, it is detailed analyzed the characteristics of the industrialstructure of Henan Province and foreign direct investment’s distributionin the three industries. Then, it is to measure the deviation value ofindustrial structure adjustment caused by foreign direct investment.Finally, according to the conclusions, it is suggesting how effectivelymake use of foreign direct investment to optimize the industrial structureof Henan.