The Research Of The Economic Effect Of Foreign Direct Investment In China

The importance of FDI is well known. Taking advantage of the FDI is an important component part of the basic national policy of China.Therefore, it is very important to combine economic theories with the economic situation of China to research and analyze the economic effect, negative influence and the inside connection and regular pattern between the economic effect and economic policy of FDI.Based on the theories of international investment and the experiences of making use of foreign investment of developing countries, this thesis analyses the economic effect of Foreign Direct Investment in China from the four aspects of capital formation, employment, technique diffusion and international trade. Then it analyses the inside connection which is existed among the economic effect of foreign enterprises' direct investment, the types of FDI behavior and the economic policies. There is a new thought to analyze economic policy from economic effect, resulting the "economic effect-policy" model. This thesis also analyses the negative influence of foreign enterprises' direct investment on Chinese economy. Finally, it gives strategic suggestions to the use of FDI.