The Influence Of Foreign Direct Investment On Adjustment Of Tertiary Industrial Structure Of Shandong

Under the current "transfer mode, adjust structure" big economic background, the development of tertiary industry has caused more and more attention to the Shandong provincial government. And in the 21 st century, the quantity and quality of FDI to Shandong tertiary industry has been highly improved.Foreign direct investment plays an important role on the development of tertiary industry from the way of capital, technology,and manpower. This paper tries to analyses the effects of importing foreign direct investment on the changes in Shandong tertiary industrial structure through theoretical analysis and empirical methods. And we can give some suggestions to the empirical result.First, this article reviews the research about the influence on FDI to tertiary industrial structure,the theory of FDI and the development of tertiary industrial structure. Second,this article sums up the routes of FDI on the adjustment of tertiary industrial structure from the way of capital, technology, and manpower and the changing effect of systemthis.Third,this artical analyses the progress,characteristic of the tertiary industrial structure and FDI in Shandong, then summarizes the problems existing in them. Finally,uses Granger causality test method to prove the causality relations between FDI and the change of tertiary industrial structure of Shandong. FDI is an important factor of affecting the change of industries. The influence of FDI on the adjustment of tertiary industrial structure is positive.According to the empirical results and the development of the tertiary industry in Shandong province, if Shandong province wants to promote the internal structure of the tertiary industry with foreign investment, they should pay more attention to the development of emerging service industry, improve structure of impoting FDI, and give full play to the functions of the government and combine the human capital with economic environment,to promote the upgrading of the internal structure of the tertiary industry in Shandong.