Optimization Of The Industrial Structure In Guangzhou Based On The Factors Of FDI

With the global industrial chain further integration in the worldwide, industrial structureadjustment and optimization is increasingly becoming an important part of the nationaleconomy restructuring during the economic globalization. And foreign direct investment asan important manifestation of economic globalization, is increasingly becoming an importantfactor affecting the host country’s industrial structure. Since the reform and opening up,Guangzhou as one of the forefront opening up cities, uses superior geographical advantagesand preferential attracting investment policies, attracted a large number of foreigninvestments, the economy has been developing rapidly. At the same time, industrial structureof Guangzhou has undergone great changes.Based on this, the article combines with relevant data of Guangzhou’s foreign directinvestment and industrial structure, uses a large number of charts to contrast and analysissituation and characteristic of Guangzhou introduction and utilization of foreign investmentand industrial structure since the1990s,data showed that the utilization of foreign capitalincreased year by year in Guangzhou, dominance of Guangzhou three industries have agradual transition from the second to the third industrial industry, and then further analysisthe distribution of foreign direct investment in Guangzhou three industries, the analysisshows that the industrial distribution of FDI gradually showing three, two, one characteristic,there is a certain synchronization between the industrial distribution of FDI and industrialstructure in Guangzhou.Based on the above analysis, the article based on systematically analyzing the factorsaffecting optimizing industrial structure, using a combination of theoretical and practicalapproach, combined with the actual situation of Guangzhou, studies various industrialstructure optimization effects of foreign direct investment, theoretically derived mechanismthat the impact of foreign direct investment to optimization of industrial structure ofGuangzhou. Through various kinds of effects of foreign direct investment,such as capitalpromoting effect, technology transfer and spillovers effect, industry association effect andcompetition and demonstration effect,acting on the factors of industrial structureoptimization, and ultimately achieve the purpose of the impact of the industrial structure.Then article used panel data1991-2012of Guangzhou and the empirical analysis method todo an empirical study of the effect about foreign direct investment in Guangzhou promotingthe optimization of three industrial structure and the internal structure of the tertiary industry.Empirical studies show that foreign direct investment promotes the optimization of industrial structure and three internal structure of the tertiary industry in Guangzhou. In addition,foreign direct investment plays a greater role in promoting modern services than thetraditional service. It should be noted that foreign direct investment have long-term effectson the optimization of the industrial structure of Guangzhou, indicating that FDI is activeand useful to the optimization of the industrial structure of Guangzhou in the long-term.Guangzhou should further enhance the role of foreign direct investment promoting theoptimization of industrial structure of Guangzhou in some ways such as furtherstrengthening the investment environment, optimizing the distribution of foreign directinvestment among the three industries, enhancing the capability of independent innovationand so on. Thereby to promote better and faster development of Guangzhou economy.