Comparative Study On The Influnce Of FDI To Industrial Structure Of Eastern, Central And Western Regions Under The Background Of Regional Transfer Of Foreign Capital

Since foreign capital was invested into China, eastern region has been the main district attracting foreign investment, while the central and western regions attract much fewer. For a long time, Chinese economy has been regionally unbalanced and unreasonable. Compared with eastern region, central and western economy is much smaller in amount and the industrial structure is more unreasonable. However, industrial structure optimization is an essential way to improve the competitiveness of a nation. In recent years, with the changes of economic environment at home and abroad, FDI is inclined to transfer to central and west regions rapidly. With the method of comparative analysis, the effects of FDI regional transfer on the industrial structure of the eastern, central and western regions in China are studied respectively.The first part introduces the background and previous studies of the issue. The second part describes the traditional concepts of FDI, industrial structure, location and the influencing mechanism of FDI on industrial structure. The third part analyzes FDI utilization status, FDI regional transfer situation and industrial structure status of east, central and west regions, and a correlation analysis between FDI regional transfer and industrial upgrading is studied as well. Analyzing the data of FDI of different regions from 2002-2013 and the share of GDP of every industry, the fourth part depicts the empirical analysis on the effect of FDI on industrial structure of eastern, central and western regions using the Distributed-Lagged Method, and gives the reasons for the result. The result shows that FDI has negative effect on primary and secondary industry in eastern region and positive effect on tertiary industry. FDI has positive effect on secondary and tertiary industry, while the negative effect on primary industry. FDI has positive effect on primary and secondary industry and negative effect on tertiary industry in western region. Finally, some suggestions and policies are proposed to improve the industrial structure of the eastern, central and western regions.