The Trend Of Foreign Direct Investment And The Enlightments Of China

Since the middle Period of 1990s, with the development trend of globalization, integration and informationization of international economy day by day , International direct investment have increased at very high speed, and the Transnational corporations have got the development at full speed no matter in the quantity or on the scale of the Foreign direct investment (FDI). It has very important effect on the global economy and the economy of each country or region, and makes their relationship more and more close. That means every country or region should take account of others when it makes some policies of development. China is without exception. Since 1978, China has a huge increase in economy and FDI. Now China is a member of WTO, and is getting more and more benefits from the development trend of globalization and the open economic policies. Furthermore, China is becoming an important country over the world. If China wants to keep or promote its position in the global economy, it must know the trend of the FDI. Then it can do the good job in the economy development under the FDI trend.This article, adopting the methods of theory analysis and empirical analysis, qualitative analysis and quantitative analysis, microscopic analysis and macroscopic analysis, studies the trend of the International direct investment in the world and its impact of the economy at a macro-economic angle, and analyses the new characteristics of Transnational corporation's global operation and its effect of the economy at a micro-economic angle. Basing these studies, the article gives some suggestions of the development of the FDI input or output in China.The full text is divided into four chapters. Chapter one, as the introductionsection, studies the conception, classification and the typical theories of the International direct investment in developed countries or the usable ones in developing countries.Chapter two discusses the trend of International direct investment and its impacts on the global economy. Firstly it studies the input trend or the output trend of International direct investment over the world by using the econometric model. The empirical models imply that the speed of the FDI input in the developing countries is faster than that in the developed countries. However, it is that the gross of the FDI output in the developing countries is more than that in the developed countries. Secondly it analyses the development characteristics of the FDI structures in regions, industries and investment model, and of the FDI polices made by the countries. It states that the developed countries play a major role in the global FDI development, and the service business is getting more and more FDI, and the Cross-Border Mergers and Acquisitions is popular, and the FDI policies of the countries is more and more open. Finally, it gives the FDI effect of the global economy at a macro-angle.Chapter three gives the key research of such contents as the new trends of Transnational corporations and its impact of the global economy, the regional economy or the country economy. It studies indirectly the FDI factors and the investment model of the Transnational corporations. Based on the research of the economic effects at a macro- or micro-angle, it implies that the Transnational corporations have an important effect on the economic globalization and increase, and always have a positive or negative economic impact for the any countries.Chapter four, as the section of conclusion and propose of this article, provides some suggestions about adjusting the quantities and structures of the FDI input in China and the FDI stratagem of Chinese enterprises, depending on the studies of the FDI development in China and the trend or characteristics of the global FDI.