Impact Of FDI On The Upgrading Of Industrial Structure Of China’s Manufacturing Industry

Foreign direct investment is an important means of multinational companies to implement internationalization, also is the main mode of developing countries introducing foreign capital, plays an important role in the international capital flow.Along with the introduction of foreign direct investment scale, foreign direct investment has become an important power to promote the development of Chinese economy, to a country’s industrial structure adjustment and upgrade. 70% since China’s accession to the WTO, foreign capital flows to the manufacturing industry,manufacturing industry has been the most foreign capital inflows and attract foreign capital most departments. Foreign direct investment on China’s manufacturing industry structure upgrade will have important influence. Therefore, research of manufacturing fdi impact on manufacturing industrial structure upgrade, it is of great significance. On the research methods, this paper USES the qualitative analysis method to study the manufacturing FDI effect on China’s manufacturing industry structure. Using quantitative analysis at the same time, manufacturing FDI and manufacturing industrial structure rationalization and empirically, the inspection to a deeper understanding of manufacturing FDI impact on China’s manufacturing industry structure through internal, set up four indicators, respectively is empirically manufacturing output structure, asset structure, employment structure and technical structure empirically highly empirically, and has set up a control variable, namely the added value of manufacturing, and join the explanation variable manufacturing FDI,and through the establishment of distribution lag model to pose in Japan and its four indexes respectively carried on the empirical test, the other VECM model is established to test empirically the rationalization indexes, and the test results are analyzed, and puts forward the corresponding policy recommendations. Through empirical test, the conclusion is as follows: manufacturing FDI has positive effect on China’s manufacturing industry structure optimization, and long-term impact is greater than the current period. But manufacturing FDI impact on industrial structure through the internal index is not the same. For specific performance, manufacturing FDI on China’s employment structure and technical structure has a positive effect, and empirically on China’s manufacturing output structure and asset structure empirically highly has a negative effect.