The Research On The Influence Of Foreign Direct Investment On The Regional Adjustment Of Economic Structure Of China

This paper mainly discusses the influence of foreign direct investment on Chinese energy intensity changes and capacity utilization changes based on the Chinese East-Mid-West panel data from 2004-2012, using cointegration test and ECM model.The results shows that there exists a balanced relationship in foreign direct investment and energy intensity, foreign direct investment will increase energy intensity in eastern and middle region, while will decrease in western region. There also exists a balanced relationship in foreign direct investment and capacity utilization, foreign direct investment will increase capacity utilization in eastern, middle and western region. The short-term foreign direct investment will have influence on energy intensity only in eastern region. Foreign direct investment will have influence on capacity utilization in eastern and middle region. However, short-term foreign direct investment is not a remarkable factor for capacity utilization in western region. Lastly, the government needs to make policies according to the reality in different regions.