Research On Influence FDI Exerts On Economic Development And Economic Fluctuation Of Our Country

Economic cycle has been the important content of the economicsresearch all the time. Economist's study on capitalist economic cycle ofevery country in the world, has already nearly had a history of 200 years,and have formed many kinds of theory of economic cycle. There are thefollowing theory of economic cycle abroad mainly: the theory of nocrisis in market economy, the theory of insufficient consumption (thedemand), theory of Marxism's economic crisis, the theory of currencyeconomic crisis, the theory of actual economic assault, the theory ofinnovative cycle, the theory of political economic cycles etc. Thedomestic economists have carried on further investigation on economiccycle of our country in recent years, and have put forward someinfluential theories. There are the following theory in relevant economiccycle: the theory of mechanism variation, the theory of agriculturalcycle, the theory of many factors acting on, the theory of the imbalancebetween supply and demand of investment etc. The factors are complicated and changeable which cause economicfluctuation, they are various because of in different countries anddifferent stages of economic development in these countries. Thedomestic and international economists have announced the reasonformed in economic cycle from different angles, These theories ofeconomic fluctuation have important reference meanings to us forstudying economic cycle. However, these theories look for the reasonthat bring about the economic fluctuation mostly from the domesticangle in above-mentioned economic cycle, analyze the foreign factorless likely, especially the impact on economic cycle of various countriesof international capital circulation under the condition of economicglobalization. Proceeding with the direct investment theory and theoryof economic cycle, it is analyzed that the direct foreign investment is afactor which have an important influence on economic fluctuation of ourcountry, and attempt to offer the theoretical foundation that reduce itsadverse effect on economic fluctuation of our country while bringingabout an advance in economy of our country effectively. This article is around the logic thread of influence which foreigndirect investment (FDI) affect on economic fluctuation of our country's,proceeding with the theory of foreign direct investment and theory ofeconomic cycle, and we divide the research of the relevant problem intofour chapters and launch describing : The first chapter, in the first part ofthis article ,we give a brief introduction of ten economic cycles that ourcountry has experienced since it was established , and analyze the reasonwhy the characteristic of economic cycle has changed around reform andopening up to the outside world. Thus we draw out the theme of thisarticle, namely foreign direct investment is an important factor thatinfluences economic cycle of our country. The second chapter, as thefurther foreshadowing of proving the theme, we do a systematicintroduction that our country has utilized the overall situation of theforeign capitals since the foundation of our country. The third chapter,through the regulation of Granger's check of cause an effect, weexamine the relation of cause and effect between foreign directinvestment and China's economic development, and I find that foreigndirect investment interact as causality with China the growths ofeconomy from examination and there are long and steady relations ofcausality between them. The fourth chapter, following up, we haveanalyzed the mechanism of conducting that the foreign direct investmentinfluence economic fluctuation of our country further, and analyze thatforeign direct investment has many pros and cons influence on economicfluctuation of our country and our measurement. At last, combining thefourth economic cycle after the reform and opening up to the outsideworld, probe how to adjust policies of FDI of our country at differentdevelo...