FDI, Economic Growth In East Asia And The Enlightenment Of Our Country

The main topic of this paper is the relationship between FDI and economic growth in East Asia. Based on the theories and systematical analyses of the history of FDI in East Asia, this paper mainly discusses the effects of FDI on economic growth , situation and policy of absorbing FDI in East Asia.At first, based on the introduction of the conception, developing history of FDI, it discusses the purpose and meaning of research on this topic in the light of the disputes of the current situation of FDI and the effects and characters of FDI on economic growth in East Asia.Secondly, from the view of developing economics, neoclassical economics and new economic growth theory, this paper gives the systematical analysis and comparison of FDI's effects on economic growth.Thirdly, this paper gives an analysis of the environment and practical policy of absorbing FDI in East Asia. The environment analysis includes scale, distribution, supply, demand, institution, environment and human capital. Based on this analysis, we conclude that short-time investment capital, cost-driving and market-driving FDI are the major types of FDI in East Asia. While the technical intensity and capital intensity FDI, which has a long-period effect on economic growth and investment performance, are rare. The major factors in absorbing FDI in East Asia are the enlarged market scale, increased effective demand, improved infrastructure and abundant labor. Institution, policies and human capital are major factors determining long-period investment performance, but they have limited effects in absorbing FDI in East Asia in the past.Fourthly, the empirical research of this paper shows that FDI has much more contribution than domestic capital to economic growth. However, with the improvement of total economic effectiveness and technology in East Asia, the FDI's direct contribution to economic growth goes down. And there is no or little indirect contribution of FDI to economic growth according to the complementary extents between FDI and local investment, human capital. It indicates that the effects of technology diffusion and spill-over is not obvious and that FDI has limited contribution to promoting technology progress in East Asia.At last, this paper analyzes economic growth and prospects of FDI in East Asia and gives some suggestions according to the above analytical results.Huang Na(Finance) Directed by-Wu Haihua...