A Study On The Impact Of Foreign Direct Investment On China Petrochemical Industry

Foreign companies have been investing in China on a large scale and in a systematic way since 1990s. The influences of Foreign Direct Investment on China Petrochemical Industry are becoming more evident day after day. In order to research the influences of Foreign Direct Investment on Petrochemical Industry in China, this dissertation is on the basis of the latest research results and methods on the subject of Foreign Direct Investment and Organization Theory. The main content of the dissertation includes: It focuses on the influences of Foreign Direct Investment on the Market Concentration Ratio, Entering Blocking, Market Conduct, Scale Economy and Organization Structure. Then, it studies whether Foreign Direct Investment in China Petrochemical Industry improve the industrial organization structure and achieve effective competition; It discusses whether Foreign Direct Investment has made China Petrochemical Industry taking advantage of advanced technology and whether the effiency of China Petrochemical Industry has been improved by utilizing advanced technology brought by Foreign Direct Investment.By collecting relevant data, the dissertation uses statistical indicators to analyse the market structure and competition, and then establishes the model to measure the relationship between Foreign Direct Investment and efficiency of China Petrochemical Industry. The result from analysis shows that: Foreign Direct Investment promotes marketilization and effective competition in China Petrochemical Industry. From the view of market structure,the market is oligopoly with scale economy and competition. Though there is a positive relation between Foreign Direct Investment and efficiency of China Petrochemical Industry,Foreign Direct Investment did not make obvious contribution to China Petrochemical Industry. It may be due to the imperfect market competition mechanism and technology monopoly of transnational petrochemical companies.