The Effect Analysis Of Chinese Attraction Of FDI And Thought For The Strategy Of Selective Attraction

Since 90s' of the 20th century, With the globalization of economy and the growth of science and technology, international direct investment has gradually made deep and essential development. The transnational mergence is becoming the major way for direct foreign investment. The proportion of new and hi-tech industry is going up. And service industry is becoming a Hotpoint of direct foreign investment to developing countries. The above new changes has inevitably bring great influence on every countries' economy development. What effect the investment host country can get from these changes is closely related with the economy development stage of the host country. The higher economy development stage and the stronger the structure capability of the attraction of international direct investment the investment host country has, the more long-term positive economy effect the country can get. Thus the attraction of foreign direct investment and economy development can form a positive interaction. On the contrary, if the investment host country with a low economy development stage and a limited capability of attracting international direct investment can get not only very little increasing effect but also negative influence. As the UNCTC (1992) reported the function of international direct investment altered with the change of the host country's economy development stage. China is a developing large country. The economy development among the different areas of China is un-balanced and is of multiplicity and gradation. Thus the objectives among different period and different areas exist large variance. Considering the relation between the attraction of FDI and the economy development of the host country. It is necessary for China to make a rational selection of the attraction of FDI according to the accumulation of economy increasing factors and the strength of structure capability. The paper analyses the effect of China's attraction of FDI and structures a selective strategy of attraction of FDI. Around these ideas, the paper develops into following chapters:Firstly, on the basis of the systematical analysis of the international investment theories, the established studies are searched to support the relation of international direct investment and economy development stage.Secondly, combining the character of FDI and the accumulation of economy factors as well as the structure capability, the paper continues further study therelation and build the analysis frame of the research.Thirdly, from the Chinese economy development situation the paper studies economic effect of attraction of FDI among different economy development stage. And set up a evaluation system of China's attraction of FDI, verify the interaction and bring forward employing Chinese economy development character as the primary accordance to attract FDI.Fourthly, considering the multiplicity of Chinese economy development, the multi-selective strategy of attraction of FDI is brought up and is analyses from its accordance ,principle and feasibility.Fifthly, from Chongqing's actual economy development situation and the dynamical character of economy development, establish some innovative proposals to attract and utilize FDI in Chongqing.