A Study On FDI's Impact To Economy Of Beijing

In the tide of the economic globalization, the speed of the world capital flow accelerates and the quantity of it increases but the distribution of it is uneven. Among developing countries there is a keen competition in absorbing foreign capital. Especially at the turn of 20th century and 21st century, with a new round of industrial structure adjustment all over the world, the competition is becoming fiercer not only among developing countries, but also inside our country where Beijing, Guangdong, Shanghai, Fujian and other places for instance, give play to their own regional advantages and improve the investment climate one after another to prepare for absorbing foreign capital more. Against this kind of background, for Beijing, we should understand deeply the level of economic development and the state of FDI, analyze the relationship between economic growth and FDI, and more importantly study systematically how FDI influences the economic growth to give some empirical support and help to the adjustment of the policy of absorbing foreign capital in the future. This text stems from my tutor Professor Wang Yuzhen's subject" Analysis of Impact on the Change of the Way of Foreign Investment in Beijing "which belongs to the project of the Humane Social Sciences of Beijing Municipal Education Commission. This paper is based on the relative researches both at home and abroad. First, based on the series data of Beijing from1987-2003, the current situations and the structure characteristics of Beijing FDI was analyzed in the respects of the aggregation of , the way of , and the source of the investment, etc.; Second, in order to find out the different functions that different kinds of foreign-investment enterprises give play to in promoting the social economic development of Beijing and the problem that exists in using foreign capital of these enterprises, the state of production and management of the foreign-investment enterprise was analyzed; Third, on the basis of Granger No-Causality Testing, statistical analysis was done on the time series data of some indicators of economic growth in Beijing to see whether and how FDI influences on the economic growth of Beijing by linear regression. Finally some solutions and suggestions were put forward expecting to be conductive to the improvement of the policy of absorbing foreign capital in Beijing. There are some innovations in this paper. First, for the first time, overall and systemic description to the state and tendency of FDI in Beijing and new characteristics and some problems of FDI in Beijing in recent years were found out. Second, "Granger No-Causality Testing"was used to examine the relation of FDI and economic growth of Beijing proving that the inflow of FDI did promote economic growth of Beijing but the later not the main factor of attracting more FDI from 1987 to 2003. Third, for the first time, quantitative relation of the relevant indicators of FDI and economic growth in Beijing was estimated by using SPSS and the method of linear regression to get the real economic result of FDI in Beijing. And the fourth one, some suggestion was given to improve the policy of absorbing foreign capital in the future in Beijing on the basis of the analysis result.