On The Correlation Between FDI And Industrial Restructuring In Qingdao

In the past three decades, foreign direct investment （FDI）absorbed by Qingdao has played apositive role in promoting the local economic development. The FDI have made up for the shortageof construction funds in Qingdao, intensifying the industrial technology content, introducing highand new technology and modern service industry. At the same time, Qingdao is trying to upgradethe industrial structure constantly. In theory, introduction of foreign capital is mainly for upgradingof the local industrial structure. However, what is the realistic relationship of them in Qingdao?How much did the FDI do to upgrade the industrial structure of Qingdao? It is needed to useempirical methods to verify.The first Chapter of the paper reviews the relevant theories of the FDI and the upgrading of theindustrial structure, to find out the mutual relations both at home and abroad, making the researchdirection clear.The second Chapter defines the related concepts of the FDI and industrial restructuring.The third Chapter discusses respectively the situation of the introduction of foreign capital ofQingdao and the situation of industrial distribution in Qingdao, and the process of Qingdaoindustrial structure evolution.The fourth Chapter discusses respectively how the foreign direct investment promote theupgrading of the industrial structure and the impacts to the industrial restructuring. Qingdao’ssituation is analyzed.In the fifth Chapter, the empirical analysis is applied to find the correlation in between theforeign direct investment and the upgrading of the industrial structure in Qingdao.In the regression analysis, FDI and three main industries, and timing are used. It is concluded thatthere is the long-term causal relationship between them. Suggestions have been put forward in theend of paper, on the basis of above analysis, considering the changes in the economy of Qingdao.