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Research On Several Problems Of Foreign Direct Investment In China

Posted on:2009-05-19Degree:DoctorType:Dissertation
Country:ChinaCandidate:J ZhangFull Text:PDF
GTID:1119360272472346Subject:Systems Engineering
Abstract/Summary:PDF Full Text Request
Thanks to its economic reform began in 1979, China has been one of the fastest growing economies. China has gradually liberalized its foreign direct investment(FDI) policy regimes, reduced restrictions and barriers for FDI, and improved the investment environment. With its potentially huge and fast-growing domestic markets, low-cost labor, China has become one of the most attractive destinations for FDI. FDI on China's economic development has positive effects, in the employment effects, domestic capital formation, technology transfer and innovation capacity, optimize the industrial structure and export. But FDI also has a negative impact on China's economic development. Negative effects reflect in our economic autonomy,pass on the investment risk and environmental pollution, which is followed by the analysis of the existing problems in the use of foreign direct investment. The technology content,the funding structure,the main structure,industry and trade structure and regional distribution are not reasonable. On this basis there is an analysis of foreign direct investment in China's six major characteristics, including speed characteristics, funding sources characteristics, geographical distribution characteristics, the distribution of industries, investment characteristics and the main features of investment, which is the focus of the investment analysis of the characteristics. With the development of economic, foreign direct investment occurs in a new way - M & As.The increasing FDI can attribute to international factors and domestic factors. These factors affect differently at different stage. The main factor change from huge labor supply at early stage to potential market volume at lately stage.The improving infrastructure better the efficiency of FDI. Improving service level , attractive policy and engaging in international organization are all helpful to FDI.Foreign direct investment obviously affect our economy, Which promote the export and economy growth.The error correction model was used to study the influence of foreigh direct investment to main economic variables. The empirical model show that there is a equilibrium among these variables.The impulse response results show that a impulse cause a series of effects to relevant variables.Variance decomposition results show that GDP exert steady increase to import, FDI exert steady increase to export, GDP exert steady increase to FDI.It is so important to know the relationship between the foreign direct investment and export,and the relationship between the foreign direct investment and GDP that the government can manage the national economy. The back-propagation(BP) neural networks were used to study the influence of foreign direct investment to export and GDP.The simulation results show that accumulated foreign direct investment can better predict the relevant export and GDP.Since 1980, FDI in China (FDIC) has increased progressively year by year.With China had ranked the first place of FDI inflow recipients in the world, determinants of FDIC has become one remarkable topic. Nowadays, FDI has played an important role in Chinese economies. It is also improving the quality of Chinese economic development by way of changing the development style.
Keywords/Search Tags:FDI, Crucial Factors, Cointegration, Vector Error Correction, BP neural networks, simulation, measure
PDF Full Text Request
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