Theoretical And Empirical Analysis Of South Korea's Direct Investment In China On China's Economic Growth Effect

The absorption and utilization of foreign direct investment is an important measure and also an important symbol of reform and opening-up in China. As of June 2006, China' s actual use of foreign direct investment was more than 650 billion U. S. dollars. Foreign direct investment has had positive effects on China's economic development. For example, The foreign direct investment effectively built up the funding shortfalls of China by increasing the capital stock and increase revenue sources; balanced China's international balance of payments by increasing China's foreign exchange supply; eased the pressure on China's Employment by absorbing China's labor force; and also improved the local workers' labor skills and the efficiency of production through the introduction of foreign advanced technology , management expertise, and the training of technical personnel; In addition, foreign direct investment in China also contributed to the rapid development of China's international trade and the structure of China's international trade and industrial. Foreign direct investment also had some negative effects when promoting China's economic growth. For example, foreign direct investment in China is concentrated in the secondary industry, which is not conducive to China' s optimization of industrial structure; Foreign direct investment in China is mainly concentrated in coastal areas in the east, but central and western regions is relatively low, the imbalance of China's increased investment in the regional structure increased the difficulties of the balanced regional development; Some foreign direct investment consumed a large amount of non-renewable resources in China, which worse the ecological environment of China, and will make adverse impact on China's sustainable development strategy extremely; In addition, foreign direct investment in China caused the trade-balance-transfer effect, resulting in the worsening of China's foreign trade friction. Furthermore, the entrance of large multinational corporations into China threatens the national economic security of china.South Korea's foreign direct investment in China is an important...