Key Issues In Regional Economic System Attracting Foreign Direct Investment

Since the reform and opening-up policy, China has achieved great success in the sphere of making use of FDI. FDI has largely financed the domestic construction which is in need of funds, upgraded the quality and competitiveness of Chinese industries, and made great contributions to the continuous economic growth of our country. Meanwhile, Shanxi province which locates in the midwest region should play a key role in accelerating the development of western regions as a "growth pole" thanks to its own special conditions and advantages. Therefore, Shanxi must conform to the trend of economic globalization, expand the opening up, and attract high-quality FDI so as to promote its continuous economic development.From the aspects of investment environment and investment strategy, this paper takes Shanxi attracting FDI as an object to analyze its benefits, advantages and disadvantages, capital allocation, project selection and strategic transformation. It not only attests theoretically the necessity for Shanxi to transform its strategy of attracting FDI, but also gives out corresponding measures so as to provide reference for Shanxi to attract and make better use of FDI.The innovation research of this article manifests mainly in the following four aspects:(1) Establish Gray Entropy Relationship Model based on the gray relation theory and the entropy theory, and use it to finger out the order of the main influence indicators of Shanxi FDI. The advantage and disadvantage analysis of Shanxi FDI absorption capacity will be given by vertically identifying the influence of its indicators and horizontally comparing with other provinces(2)Taking local governments as the core, by means of collecting the information on indicators of FDI from private opinions of experts, we set up a multi-criteria Stealth Evaluation and Decision Assembled 0-1 Decision-making Planning model based on the multi-criteria Stealth Evaluation and Decision theory and Mechanism of consensus theory, which has been used for decision process of attracting FDI in Shanxi. Furthermore, the model has been proved to be an effective method in selecting FDI, from the aspects of assembling experts'private opinions quantitatively and excluding disturb of partiality element effectively.(3) From the aspect of macrocosmic subjects namely enterprises in FDI, we establish Grey Evolutionary Game Chain Model and analyze strategies and behaviors of enterprises in the process of attracting FDI in Shanxi. Through the Copy Dynamic Simulation of the model, we find that the number of foreign enterprises in this Province will stay in a certain grey area. The theoretical explanation for this phenomenon is given through the stability analysis of the formation and the development process of the introduction of foreign capital, which also provides a theoretical support for Shanxi province to change the strategy of attracting FDI from"Scale expansion"to"Quality improvement"(4) We put forward effective countermeasures of attracting FDI for Shanxi province. And the author deems that the essence is to enhance the international competitiveness. These measures include the improvement of invest environment, the ability of technology assimilation, absorbability and exploitation as well as keeping the harmony of different aspects are all helpful to improve international competitiveness and then enforce the status and profit in the introduction of FDI in Shanxi. Meanwhile, the favorable policies regarding to foreign investment should be adjusted.