Impact Of FDI On The Upgrading Of China’s Industrial Structure

In an open economy, foreign direct investment has become an important way to implement the global strategy of multinational companies; it is also an important factor to promote industrial restructuring and upgrading. Rationalization of industrial structure is the foundation of the Industrial structure; industrial structure is a necessary stage of a country’s economic development and internal requirements. At present, China is still in the stage of economic development; China’s industrial structure is in the process of rationalization of the industrial structure to the development of the industrial structure.Studying utilization of foreign direct investment to accelerate the upgrading of China’s industrial structure is important.In this paper, by theoretical and empirical analysis method, based on the perspective of industrial structure to study the impact of FDI on China’s industrial structure. Firstly, literature of FDI and industrial structure are reviewed, the basic concepts of FDI and industrial structure of FDI and industrial structure theory are summarized, FDI affects the mechanism of industrial structure. Secondly, we analyze the current situation of foreign direct investment and China’s industrial structure concluded that although China gradually to the high-tech areas of development, industry bodies has been optimized, but China’s industrial structure is still irrational. And the status of Chinese foreign direct investment drawn from the analysis, the amount of foreign direct investment in China will continue to increase, but small-scale investment in industry is mainly concentrated in the manufacturing industry, the investment is mainly concentrated in the eastern region, investment origin is relatively concentrated.Foreign direct investment has played an important role in China’s industrial structure aspect, but is constrained by China to attract investment structure is irrational, technology absorption capacity is weak, transnational corporations control technology and other factors.Finally, the above studies use statall.2 software econometric analysis model, results show that foreign direct investment, exports, and technological progress, the employment have positive effects on the level of high-class effect of Chinese industrial structure, and this effect is long-term nature, but effect size of FDI is the most. On this basis, we proposed policy recommendations to speed up the upgrading of China’s industrial structure level.