Research Of The Using Of Fdi In Jiangsu's Development Strategy Along The Yangzte River

In recent years, FDI to China comes into a new phase. Its quantity and areas go wider and wider. As a province with high proportion of FDI usage, FDI has an important role in Jiangsu's economy. It will surely have great effects on the Jiangsu's development strategy along the Yangtze River. So it is of great significance to research the advantages and disadvantages of FDI in the strategy. This paper firstly gives a brief introduction of FDI theories. Then it gives the motivating factors of FDI and gives a brief appraise of current FDI theories. Based on the analysis of the content of Jiangsu's development strategy along the Yangtze River, this paper analyzes the actual state and effects of FDI in the region of Yangtze River. The effects of FDI in this region can be divided into two parts. Its beneficial influence can be seen from seven aspects. But it also has six disadvantages to the development strategy. These disadvantages are shown as following aspects: regional economic growth, technology progressing, industry structure, works chance, financial security and balance of regional economy. After giving the reason of these influences, this paper gives some suggestions on how to use FDI efficiently in the development strategy along the Yangtze River.