Analysis of FDI on the Effect of Liaoning’s Industrial Structure
|Keywords||FDI Liaoning Industry Structure Panel data model|
It has been 32 years since reform and opening up, China has absorbed large amounts of FDI and the quantity has jumped to the third in the world. FDI has a profound impact in improving the employment of residents, promoting technology innovation and balancing of payments in invested regions. Researching on FDI correctly, scientifically and truly foreign is significant regional economics.In recent years, study of FDI mainly concentrated in the developed provinces and municipalities, but researching on the old industrial base in Liaoning is relatively small. Liaoning Province has received a great deal of FDI, how to influence the industrial structure in Liaoning? Especially, China is in improving industrial structure and upgrade period. How to optimize the utilization of FDI in the industrial structure better in Liaoning is the purpose of paper.The main line of the paper is to study FDI on the effects of Industrial Structure in Liaoning. Firstly, analysis of the significance of research questions, together with literature review research progress at home and abroad, is summarizing the industrial structure of foreign direct investment on the positive and negative effects. Secondly, analysis of FDI status and characteristics of Liaoning, analysis of the status and characteristics of industrial structure of Liaoning. Thirdly, using FDI of three inter-industry data and data within the industrial industry in Liaoning to analyze FDI’s direct effect on industrial structure in Liaoning, selecting China, Jiangsu and Liaoning province’s three inter-industry and data within the industrial industry to establish a panel data econometric model for analysis. Estimating FDI in China, Jiangsu and Liaoning province’s three inter-industry and data within the industrial industry effect, analyzing the results comparatively.This paper insists that Liaoning should continue to develop their own strengths, learn the advanced experience from Jiangsu and adjust the strategy and policy orientation actively. Promoting FDI to guide industry, encouraging FDI in hi-tech first industry, guiding foreign investors to increase investment in strategic and emerging industries according to actual situation, using FDI to optimize and upgrade traditional industries, increasing FDI in modern service industry. Promoting the integration of FDI and local economy,prompting Technology Spillover through the backward linkage, optimization and upgrading of industrial structure in Liaoning better.