Different Effects On The Two Types Of Foreign Direct Investment In China

According to the source of FDI, FDI to China is mainly composed of two kinds of investment: the investment from Hong Kong , Taiwan , Macao and the investment from United States, Japan and Europe Union. The effect of FDI to China is closed related to this structure. Being aware of the characteristic of different kinds FDI is necessary for us to design practical policy, make fully use of FDI and improve the quality of FDI. The purpose of this thesis is right to compare the effects of the two kinds of FDI on Chinese economy.There are significant differences in investment motive, market orient, investment size, investment field, technology content between the two kinds of FDI. So , the two kinds of FDI have different influences on international payment, industrial organization, industrial structure, technical improvement , the number of occupation, and the structure of export commodities. From the point of the structure of FDI, the thesis systematically compares the influences of the two kinds of FDI, points out the function of each kind of FDI during the development of Chinese economy.