Foreign Direct Investment and Industry Structural Upgrade

摘要

The paper firstly explores the bundle of beneficiary effects of FDI on Chinese industry structural evolution, next, calculates industry structural alteration from 1985 to 2008 in China, and upgrade since the reform and opening-up, and then tests the long-run and causality relations between the five impacts and FDI by cointegration test and Granger causality test, and makes general and detailed analysis on the effect of FDI by impulse-response function. The results indicate: FDI can accelerate China's industrial evolving and optimizing directly and through a bundle of beneficiary effects, such as the change of demand structure, capital accumulation, technological progress, institutional change and export trade development.