Study On The Impact Of FDI Upon Industrial Structure Optimization

The degree of economic development has a certain effect on the attraction of foreign investment, and the effect is more obvious after the reform and opening up. A large number of studies indicate that the optimization of industrial structure is affected by foreign investment through many ways, and along with economic globalization unceasingly thorough, this function will appear unceasingly.This paper takes our country’s eastern coastal region as an object, has studied the influence of foreign direct investment on industrial structure optimization. Firstly, this paper reviews and evaluates some existing related researches, and analyzes the mechanism how foreign direct investment influence industrial structure optimization. Then building a measure index system, and estimating the level of the industrial structure optimization of the eastern coastal areas with the method of the time series-global PCA, and the result shows that the level of industrial structure optimization is different from each other, but the industrial structure is becoming more reasonable and higher on the whole. Next it analyzes the specific situation of FDI in the eastern coastal areas, and then constructs a Fixed-effects-variable-coefficient model to analyze the influence of FDI on industrial structure optimization, and the result shows that this influence has different degrees and directions in different provinces. Finally, combined with all the previous analysis, the paper puts forward the reasonable countermeasures and suggestions for the promotion of industrial structure optimization by absorbing and utilizing foreign direct investment in the eastern coastal areas.