The Impact Of Jiangsu's Foreign Direct Investment On The Upgrading Of Industrial Structure

At present,Chinese economic development has entered a "new normal" stage,which is mainly reflected in the decline of economic growth,it means that the growth rate has changed from high-speed growth to high-speed growth;the imbalance in economic structure has caused some of the excess capacity;the industrial structure is in urgent need of an overall upgrade.Outward foreign direct investment(OFDI)is one of the important means for the export of capital.It not only follows the path of comparative advantage to realize the external transfer of traditional industries,but also realizes the international flow of economic resources,global sharing and optimal allocation.It also exerts its competitive advantages to obtaining advanced technology and management experience,promoting the development of the domestic economy,and optimizing the domestic industrial structure.It has become an important driving force for the adjustment of the status and spatial distribution of the domestic industry.Along with the "One Belt and One Road" strategy and the proposal of international capacity cooperation,as the province with the forefront of China’s economic development,Jiangsu province is actively responds to relevant national policies and continuously accelerates the pace of Jiangsu’s outward foreign direct investment.Jiangsu use outward foreign direct investment to achieve the transfer of traditional industries,resolve excess production capacity,and optimize the upgrading of the industrial structure in Jiangsu is worthy of in-depth research,and it is of great significance to Jiangsu’s economic development and industrial upgrading.With regard to the study of Jiangsu’s outward foreign direct investment to promote the upgrading of industrial structure,the thesis analyzes domestic and foreign industrial structure and foreign direct investment literature firstly,and defines the concept of industrial structure upgrade,outward foreign direct investment and its industrial transfer effect.The scale and structure of Jiangsu’s foreign direct investment and the status of Jiangsu’s industrial structure are analyzed.With the increasing scale of Jiangsu’s foreign direct investment,the main investment entities are private enterprises,the scope of investment is more extensive,the investment region is mainly concentrated in Asia and it is spreading to other regions.The investment industry is mainly distributed in the labor-intensive manufacturing industry and the traditional service industry.Subsequently,the article also gives an overview of the development status of Jiangsu’s industrial structure,and finds that there are still some problems in the development process of Jiangsu’s industrial structure,such as a low level of industrial structure etc,but on the whole,the level of industrial structure in Jiangsu is constantly improving.The author combined the previous influence mechanisms of Jiangsu’s outward foreign direct investment to promote the upgrading of industrial structure,including the "down-gradient" conduction mechanism,the "inverse gradient" conduction mechanism,and the two-way transmission mechanism.Through the regression model,the impact of Jiangsu’s foreign direct investment on the upgrading of industrial structure was analyzed.The correlation degree between Jiangsu foreign direct investment and the upgrading of industrial structure under the effect of industrial transfer was analyzed through the grey correlation method.The results show that:Jiangsu’s foreign direct investment has a positive impact on the upgrading of industrial structure,and from the perspective of the industry to analyze the degree of correlation between Jiangsu’s foreign direct investment and industrial structure upgrade,that is,the impact of Jiangsu’s foreign direct investment on the industrial transfer effect on the upgrading of industrial structure.Finally,based on the research conclusions,this thesis’ combines the status of Jiangsu foreign direct investment and the characteristics of its industrial structure;it proposes corresponding policies from the perspectives of government and enterprise.The government should provide a favorable investment environment for outward foreign direct investment,and enterprises must constantly improve their competitiveness in the international investment market to promote the upgrading of Jiangsu’s industrial structure.