The Spillover Effect Of FDI On China’s Industrial Structure Optimization

At present,China’s economy is in the period of "three-phase superposition" and the economy is entering a new normal state.The economic structure is unbalanced.Along with the phenomenon of serious overcapacity and insufficient motivation for upgrading industrial structure,it is inevitable to change the mode of economic development and optimize the economic structure,which requires a lot of financial support.The entry of foreign direct investment can be carried out for it.Provide the necessary financial support.Therefore,how to guide the allocation of foreign capital to meet the requirements of industrial structure optimization has become a crucial issue in the strategic layout of China’s development.In recent years,with the rapid development of China’s economy,the financial market has also been effectively developed.Perfect financial development mechanism can not only provide sufficient financial support for enterprises,alleviate the financing difficulties of enterprises,but also promote the optimization of industrial structure by promoting the technology spillover effect of absorbing foreign capital.This paper follows the logical thinking of "literature review-mechanism discussion-current situation analysis-Empirical Research-policy suggestion",and closely adheres to the theme of industrial structure optimization.Firstly,it reviews and summarizes the relevant literature on technology spillover effect,industrial structure optimization and financial development of FDI;secondly,it explores the impact mechanism of FDI on industrial structure optimization and the threshold effect mechanism of financial development level of spillover effect of FDI on industrial structure optimization;secondly,it analyses the industrial structure and FDI in China from 2004 to 2016.Based on the current situation of investment and the level of financial development,this paper constructs a panel model for empirical analysis.Empirical analysis includes three parts: First,a static panel model is established to study the impact of FDI technology spillover on industrial structure optimization.Empirical analysis shows that FDI does not play a positive role in optimizing industrial structure at the national level,but regional studies show that FDI has regional differences in optimizing industrial structure.The impact of eastern region is significantly better than that of central and Western regions,and the interaction between FDI and financial development level is obvious in optimizing industrial structure.This shows that there is a threshold of financial development level for FDI to optimize industrial structure.The second is to establish a dynamic panel model and compare the empirical results of static panel model to analyze the impact of FDI technology spillover on industrial structure optimization.The results validate the robustness of regression analysis of static panel model and prove that the current situation of industrial structure optimization will be affected by the previous period.The third is to analyze the threshold effect of FDI on industrial structure optimization.Establish a threshold effect model with the scale of financial development and the level of financial efficiency as threshold variables.The results show that: when the scale of financial development is the threshold variable,when the scale of financial development is low,FDI has no significant impact on the optimization of industrial structure;when the scale of financial development exceeds a certain threshold,FDI will promote the optimization of industrial structure;when the level of financial efficiency is the threshold variable,when the level of financial efficiency is low,FDI will promote the optimization of industrial structure.Foreign direct investment has no significant impact on industrial structure optimization;when the level of financial efficiency crosses a certain threshold,foreign direct investment will promote industrial structure optimization.Therefore,in the process of optimizing the industrial structure,we should introduce foreign capital appropriately according to local conditions,and constantly improve the level of regional financial development to strengthen the spillover effect of FDI on industrial structure optimization.