The Role Of FDI To Promote The Optimization Of Industrial Structure In Shanxi

In2012the total amount of GDP of Shanxi province is1123.5billion yuan，ranked22nd in the national economic rankings，which is in the lower-level of economicdevelopment,at the same time,it lags far behind when compared with the developmentof Beijing and Shanghai.Shanxi has made tremendous contributions to China’seconomy,it provides average annual output of473500000tons of coal,and up to a1/4of power of Beijing comes from Shanxi every year.As a province covered by largeamount of energy resources,Shanxi has failed to become a strong economicprovince.Shanxi province has long been in the mood of economic development relyingon coal,electric power and other energy and chemical industries,which is not onlyconstrained by resources and environment,but also subject to national policies ofeliminating backward production capacity.The unreasonable industrial structureaggravates the environmental pollution, brings overcapacity, the slowdown in theeconomy, thus seriously affects the sustainable economic development of Shanxi.In2012,the economic structure in Shanxi province is5.8:57.8:36.4,not as good as theadvanced economy’s.As China’s first provincial domain,all-round and systematicnational experimental zone of comprehensive coordinated reforms,the issue seemsparticularly important and imperative,that is how to catch the opportunity to makeShanxi more attractive to FDI,then give full play to FDI to promote the optimizationand upgrading of the industrial structure of Shanxi province.Scholars from both home and abroad have done much research on the topic of FDIon host industry structure of optimization, most treat developed countries as mainsubject,using mathematical model empirical analysis FDI technology overflow effecton industry structure of optimization;there are also scholars center on provinceinter-level,but the core of the research mainly goes around East developed city,whileresearches concentrated on Midwest city of less degree open-up prove to be fewer thannone.Most existing research talks only one aspect related to the host country’s industrialstructure optimization,such as technological spillover,industrial cluster effect study ofFDI and so on,while a multidimensional study on the combination as a whole remainsrelatively small.Based on the combination of the empirical analysis of FDI,industrialtransfer and industrial clusters,the article proposed how to use FDI best in order to promote the optimization of the industrial structure.After making thorough and extensive analysis of data collected,the article tells ussomething of the undeveloped city-Shanxi province industrial structure and the situationof FDI,then find the problem existed in the use of FDI of Shanxi province.Turnthrough measurement analysis confirmed that FDI does make a great contribution toShanxi province GDP,at the same time find out the contribution rate of FDI to threeindustry,then analysis its technology overflow effect.In reference of Ruhr how topromote structure optimization and upgrading and the economic revival with the help ofFDI,the article considers on the condition of undertaking industrial transfer,how to useFDI to enhance the development of core industries,extend the industrial chain,to formindustrial clusters,at last and the most important to optimize the industrial structure ofShanxi province.