Study On The Effect Of Foreign Direct Investment In Chinese Forestry Section

Foreign direct investment (FDI) is the important financing channel of Chinese forestry section. Since the entry into WTO, the scale of FDI in Chinese forestry section has a trend of expansion on the whole. The central and the local governments take the policy of encouragement as a whole. However, in the practice of FDI utilization, the quantity of FDI is paid much attention, while there is less general planning and comprehensive analysis on the FDI effects, which leads to the blindness of FDI utilization and low efficiency of FDI. Under the background, to form the framework of FDI effect analysis, and to analyze the various effects and the comprehensive effect are the important way of improving the benefit from FDI.The dissertation divides the FDI utilization of Chinese forestry section into three stages, analyzes the characteristics of FDI utilization of Chinese forestry section at the present stage, including industrial distribution, regional distribution, original structure and entry mode, which helps to make judgment to the history and current situation of FDI utilization.On the basis of characteristic feature of FDI utilization in Chinese forestry section and designing principles, the dissertation forms the framework of FDI effect analysis. We should analyze the FDI effect of Chinese forestry section from the aspects of economic effect, institutional effect and ecological effect. The three effects are not completely independent. The realization of ecological effect is the material base of economic and institutional effect; the realization of economic effect is the pushing power of institutional and ecological effect; the realization of institutional effect is the institutional guarantee of economic and ecological effect.The dissertation analyzes the economic effect, institutional effect and ecological effect individually. (1)Economic effect. Qualitative researches are made on the mechanism of various effects, and quantitative researches are made on the empirical effect. FDI has some positive effect on forestry economy through the effect on capital formation, industrial structure, and foreign trade, however it has no positive effect on technology progress. Thus the economic effect is on the low level. (2) Institutional effect. FDI has effect on forestry institution through the effect on forestry property rights institution, forestry administrative system, relative laws, regulations and policies, open-up degree, management institution change of forestry enterprises and informal institution change. At the different stage of forestry institutional change, the FDI institutional effect is different. At present, China is in the period of the transformation from "supply-guided'stage to "middle-spread" stage. At this stage, the local governments play a more important role in the forestry institutional change and take various measures to improve the local institutional environment. Thus, the institutional environment improvement effect of FDI is more evident. The demonstration effect, spreading effect and competition effect of FDI is also evident. (3) Ecological effect. The different industry of forestry has different relationship with ecological environment and its change, thus FDI in the different industry of forestry has different route and result of effect on ecology, so the dissertation analyzes the ecological effect of FDI in primary industry, secondary industry and tertiary industry. Paper-making industry is chosen as example for empirical research. On the basis of Kuznets curve, in consideration of the effect of FDI, the dissertation forms a model to judge the ecological effect of FDI in Chinese paper-making industry. The conclusion is that both positive and negative effects exist.In the practice of FDI utilization in Chinese forestry section, there are some consistency and contradictions among various effects. The dissertation forms an effect figure with three axis, and names 8 areas:synergistic effect area, ecological effect lag area, economic effect leading area, institutional effect lag area, economic effect lag area, institutional effect leading area, ecological effect leading area, inefficiency area. There are five stages for the three effects:inefficiency stage, simple development stage, contradiction stage, adjustment stage, high-efficiency stage. At present, China is in the transformation from contradiction stage to adjustment stage, and the key is to deal with the contradictions of the various effects. And the root of the contradictions is from the contradictions among the benefit subjects. Based on the coordination of the relationship among the benefit subjects, the dissertation puts forward the mechanism to promote the synergistic effect of FDI. The mechanism should have the forestry property rights protection institution as premise, mechanism of regulation and guidance as orientation, mechanism of innovation support as pushing power, mechanism of evaluation and supervision as guarantee. In the end, the dissertation points out that the FDI favorable policy direction should be adjusted from "universal application" to "target orientation".