A Study On Theory And Practice For Full-Caliber Utilization Of Foreign Investment In Jiangsu

The economic developments from quantity and quality in China have achieved a new leap forward when entered into the 21st century. During the process of Chinese economy integrating into economic globalization, the performance of utilization of foreign capital in Jiangsu Province is remarkable as one of the pilot open-up provinces during the "10^th Five-Year Plan" in China. The introducing of foreign investment in Jiangsu has not only promoted economic growth and employment, but also created a new well-known model of economic development called Sunan model. But at the same time, there also are some fierce conflicts and issues requiring being solute urgently. During the "11^th Five-Year Plan", as Jiangsu will encounter some new situation and new challenges, the introducing of foreign investment has come to a key time and a turning point. Therefore, how to resolve the contradictions and problems existing in the utilization of foreign capital, maintain the competitive edge, develop new strategies and create a new model of foreign investment is an important and arduous task for Jiangsu to be carried out. But of current studies, these comprehensive and systematic studies are rare.Based on summing up the relative theory and combining with the status quota in Jiangsu Province, the paper sets up a comprehensive evaluation index system for the performance of introducing foreign investment. And then taken 13 cities in Jiangsu three region as evaluation target, a dynamic integrated evaluation based on the time series is carried out, with a view to reflect the size, structure, social welfare and economic effects of the comprehensive development in Jiangsu from the past to the present, identifying the problem in the use of foreign capital and discussing the internal mechanism of the introducing foreign investment with regional economic development. Based on the above, the paper established the mathematical model between the foreign capital and GDP, infrastructure, labor costs, human resources, openness and industrial gathered indicators in Jiangsu Province. Through the mathematical model, quantitative analysis of the basic factors influencing the inflow of foreign capital in Jiangsu province has been made.At the same time, the paper gives a detailed study on the current international and domestic factors impacting foreign investment sensitively, for example the new trend of the international capital flows, the new deal of "two tax into one" and the exchange rate changes of RMB, with wish give references for macroeconomic policy-making of introducing foreign. Then, on the foundation of the analysis of the major foreign investment situation, the paper proposes the guiding ideology and basic principles of utilization foreign capital from the per- spective of maximizing long-term interests in Jiangsu Province. In order to implement the scientific concept of development comprehensively, enrich the people life and realize the two "the first", the paper formulates the strategic focus of utilization foreign capital in Jiangsu Province from a high starting point during the "11th Five-Year Plan" period. Against the analysis conclusions, the paper proposes the forward-looking and workable new measures that will promote the performance of introducing foreign investment.Finally, this paper analyzes the practice process of utilization of foreign investment in Jiangsu Province with some typical cases, for example Xugong Group using foreign capital restructuring, environment comprehensive treatment project of Qinhuai River in Nanjing using ADB loans and the project of Jiangsu Power Company using international financial organizations loans. With these case, on the one hand, to test the applicability of the theory, on the other hand, to conclude the enlightenment and experience to upgrade and improve the utilization of foreign capital in Jiangsu. To sum up, the paper wants to give a full and a systematic studies of using foreign capital in Jiangsu Province, making up for the lack of previous research, with a view to offer references for the foreign policy and macroeconomic policy.