Analysis Of Investment Development Path Theory In East Asian And China

IDP theory, which was advance in I 970s, analyzed the internal relation between a countrys FDI and the industry structure and standard of this country from the dynamic point of view for the first time. Dunning and others modified the theory extensively from I 980s, especially the introduction of government factor, the introduction of the fifth stage. These modifications made the theory more practical and useful. There is indeed tight and deep relation between economic development of the East Asian countries and their FDI. Basically, FDI can promote these countries capital formation, technical advancement, and industry structure adjustment especially. However, because these countries are very different in the condition of natural resources and the ways, extent of government intervention, the propensity and extent of their inward direct investment (IDI) and outward direct investment (ODJ) are naturally different. We have gained great achievement in economy since our reform and openness. Foreign capital is undoubtedly an important in promoting economic development. Comparing with the increase of IDI, our ODI has just begun. Therefore, on the whole, the net ODI amount in our country is negative constantly and shows a trend of continuous increase. This means we are on the second stage on Dunnings curve of IDP. Then, it formulates the influences of IDI on Chinese economy, respectively from the angles of capital transference, trade and balance of ayments, market mechanism cultivating, and technology development especially. 4:...