A Study On Foreign Direct Investment' Impact To China's Economy

Foreign direct investment plays an important role in the development of our national economy since the reforms and opening. In the process of practice, we have accumulated much successful experience, however, there are still some practical problems. Therefore, it is necessary to go further study on the subject of FDI, especially the effect on our national economy and existing problems.The thesis draws comparison among different concepts of FDI, while compares other ways of foreign investment and FDI, summarizing their characteristics. It makes a summary of domestic and foreign theories from the angles of both domestic and investment countries. By using time sequential data from statistical data (1983-2004), the thesis analyzes present situation and structure feature of FDI in our country from aspects of gross investment change, investment modes, investment sources and investment industries and so on.Basing on analysis of FDI structure features, and combining with existing research results, the thesis absorbs and applies effective positivist research methods. The conclusions are as follows: The FDI volume in proportion to the social capital assets indicates that it accelerates the formation of Chinese capital and improves the quality of Chinese assets. FDI and GDP have formed a stable long-term balance, in which FDI promotes economy. The connection between FDI and GDP is a unidirectional causal relation. Foreign trade and FDI have a kind of positive supplementary relation. FDI plays an important role in creating foreign exchanges. The structure of cargo trade has been greatly improved as well. FDI has an apparent influence upon technical overflow effect of domestic industry enterprises. Foreign investment enterprises provide more employment opportunities in China.The thesis analyzes problems from angles of FDI investors and our national foreign investment management department, and summarizes these existing problems, so as to give some suggestions in case of further using FDI in the future.