Analysis on the Influence of Foreign Direct Investment on the Industrial Structure of China

Since the reform and opening-up in China, the three-industry structure of China changes constantly with the endless entry of FDI. This paper, applying time series data from 1983 to 2003, set up an econometric model to analyze the influences of FDI on China's three-industry structure. Results showed that its intluence on the secondary industry is the greatest, that on the tertiary industry is rising and that on the primary industry is the least. This paper also made corresponding analysis on the FDI inside each industry.