The Impact Study Of Fujian Outward Foreign Direct Investment On Industrial Transformation And Upgrading

Since the reform and opening up,along with the rapid growth of China's outward direct investment,the domestic industry also showed a trend of escalating over the same period.The proportion of the added value of the third industry accounted for GNP(Gross National Product)has exceeded the proportion of the secondary industry in China.There are also great changes occurring in the industry,and the industry structure has been kept optimized.Is there any links between these two seemingly different economic phenomena?Did China's foreign direct investment has promoted the transformation and upgrading of domestic industries over the past three decades?These two points mean a lot for China,whose economy requires an urgent transition.Especially after President Xi Jinping proposed the "the belt and road" policy in 2013,China's foreign direct investment met an unprecedented opportunity for development.In 2016,President Xi Jinping proposed the concept of "supply-side structural reform" at a meeting of the central economic and financial leadership group,which made the adjustment of industrial structure become an important part in the economic reform.It is an important issue to study that whether China can promote the transformation and upgrading of domestic industries with the help of foreign direct investment,just like the developed countries such as the United States and Japan.Therefore,it is of great theoretical and practical significance to study the impact of foreign direct investment,especially on the transformation and upgrading of industrial transformation.With the support of the government,the development of foreign direct investment in Fujian Province grew out from nothing,and developed rapidly after the "the belt and road" strategy,both in stock and flow.However,the problems in the process of foreign direct investment in Fujian Province can not be covered.Specifically,the main problems are:the unreasonable structure of foreign direct investment,lack of enterprise internationalization experience,lack of research and development capabilities and core technology,lack of specialists,the unguarantee of funds and lands needed for the enterprise development.This paper takes the impact of foreign direct investment in Fujian Province on industrial transformation and upgrading as the research object,analyzes the theory of foreign direct investment and industrial transformation and upgrading,and analyzes the present situation and problems of foreign direct investment and industrial development in Fujian.On this basis,this paper makes an empirical analysis to study the specific impact of foreign direct investment in Fujian on the industrial transformation and upgrading by using the Chenery standard model,taking the data between 1992 and 2015 as the research object,introducing the foreign direct investment flow,industry upgrading,GDP per capita,marketization and other variables to build a new model,and using the smoothness test and cointegration test for measurement analysis.The analyzing result shows that foreign direct investment in Fujian has a positive impact on the industrial transformation and upgrading.Based on this conclusion,combined with the experience of foreign direct investment in the United States and Japan,this paper puts forward some policy suggestions on foreign direct investment under the "the belt and road" strategy.