The Analysis Of Economic Effect Of Foreign Direct Investment

After 20s' years of reform and open, Chinese economy always maintains high growth: the speed about 9. 61% every year. Foreign direct investments play an important role in Chinese economy. At first, the paper generalizes the scale of FDI in China by lots of documents and data from the beginning of reform and open. And it shows that it is a basis policy to engross actively foreign investments. These data reflect the disadvantage effects of FDI by analysis. So the paper continues to talk about the problem. From the middle episode of 90s of the former century theses effects deepen gradually and appear many problems, intensively reflecting technology advancement---the whole level of technology in China has not been improved in essence.Then the paper point out labor, capital and the productivity on the base of technology advancement is the main source of economy growth in China.Labor and capital play an important role in the past 20s years but they will become weak in future by analysis the population structure and save ratio in China. The main target of FDI is to bring on the foreign advancedTechnology and improve the domestic technology and assure stably economy growth. Hence, the serious result is that the Chinese economy growth in the long term loses the source.There are many factors to bring on the situation; some policies and systems are main.In a word, we must reform them.