Study On The Impact Of Foreign Direct Investment On The Industrial Structure Adjustment In Yunnan Province

The introduction of Yunnan Province’s foreign direct investment began in1984.This century, Yunnan’s FDI come into the golden era. FDI has played a role onYunnan’s economic development.Yunnan from a typical agricultural province cameinto industrial and service industrial pattern. Recently Yunnan ’s economy is in theearly stages of industrialization, industrial structure adjustment and optimization facefurther demands. To raise the necessary capital, technology are the main motivationin the early stage.With greater economic development of Yunnan Province, how touse FDI for servicing the industrial structure optimization is a new topic. There aremany factors that influence the industrial structure. This paper assumes that otherfactors remain unchanged, then attempts to explore these questions such as:theimpact of FDI on Yunnan’s industrial structure, the affecting size,the causalrelationship between FDI and Yunnan Province’s industry structure. Thereforeprovides appropriate countermeasures to promote Yunnan industrial structureoptimization.Paper first reviews the main theories about FDI and industrial development,then combed the research literature about the relation between foreign directinvestment and industrial structure, raised the issue of foreign direct investmentimpact on Yunnan’s industry structure. Then inspect the development trend ofYunnan’s industrial structure and the composition of FDI structure, found there is aconsistency between industrial structure’s changes and FDI. This correlation isobvious in recent years. Finally, uses econometric regression model to estimate andanalyze the impact of FDI on industrial structure in Yunnan Province.The conclusiosfound FDI has promoted the development of Secondary and Tertiary Industry, whilein the primary industry there is a certain extent. In the end of the article, proposes theSuggestions to further optimize the industrial structure in Yunnan Province byincreasing FDI quantity and improving the quality of FDI, industrial policy, FDI efficiency, etc.