Developing Countries / Territories Of Foreign Direct Investment: Theory, Experience And Trends

As an economic phenomenon in the intemational arena, internationaI direct investment hasconsistently made and is sti11 making importANt innuence on the economic development of a11countries and the globa1iZaion of the world economy. While making efforts to developinternational trade, countries at'tach more impoFtance to the role of international investment inexpanding production and market, optimizing resources allocation and improving the industrialstructure. The thesis systematically analyzes the theoretical basis, practical experience anddeveloping tendency of the deve1oping economy's FDI. Considering the Chinese practica1experience, some policies have been suggested on the basis of the relative positive analysis.The thesis initially anaIyzes the relative concepts and theories on international directinvestment, Chapter l (introduction) concisely introduces and reviews the general theories ontransnational investment. Chapter 2, as the theoretical basis of analysis and study in the followingchapters, gives a necessary definition of international direct investment, discusses the incentive todeveloping economy's FDI, reviews the advantage theory of deveIoping economy's FDI from themicro and macro point of view respectivelyChapter 3 introduces the development and main character of developing economy's FDI,including the scale and industrial character of investment, such as the imbalance of FDI sourcesand the relative small scale. Following the general introduction and analysis, the chapter reviewssimply the known relative positive analysis and seIects, Korea and Taiwan, the representativedeveloping economy to make a concrete positive case analysis.ChaPter 4 discusses the advantage change of the developing economy participating inintemational division of labof, dilates from the relationship of scale economy, scope economy,technological relative advantage and FDI respectiveIy, putS forward the possibility and practicalsignificance of the developing economy's FDI.Considering the advantage and characters of developing economy, Chapter 5, on the basis ofpositive analysis, puts forth some entering mode choices of transnational corporations, includingthe choice of investment entering pat-tern, location and distribution of industries.Chapter 6 stwts off from the parent country's point of view analyzes the possible infiuenceof FDI on the developing economy, uses the known theoretical and positive study on thedeveloped economy for reference, puts forward a general positive evaluation in the long run.The direct influence of FDI on the parent country's balance of international payment is notnotabIe in the develoPing economy. But considering on the industry level the developing economyshould develop the investment in favor of the regulation of economic structure and improvementof international competitiveness to promote the reciprocal deveIopment of intemationaI trade andFDl.l l lThe positive analysis shows that FDI has promoted the regulation and upgrading of industrial structure in the parent country, whether developed or not, at some phase of economic development. The promotion embodies in the change of sector structure and the transfer of FDI from the labor-intensive industry with low efficiency to the capital-intensive industry with high efficiency.Through the analysis of policies on FDI in all countries, Chapter 7 comes to a conclusion that some governments are gradually canceling the limitations on domestic enterprises' overseas investment, adopting a range of policies and measures to encourage domestic enterprises' FDI, enforcing the collaboration and cooperation in the international arena and at the same time providing loose system environment and investment guarantee.Chapter 8 reviews the process and characters of Chinese enterprises' overseas investment, analyzes the potential of FDI and particularity of Chinese economic development, using the developing economy's success in FDI for reference, offers the choi...