Analysis And Policy Suggestions On China's Attraction Of Foreign Direct Investment In Agricultural Sector

In recent years, China has developed very rapidly in its attraction of foreigndirect investment and has become one of the largest host countries in the attraction ofFDI all over the world. Agricultural sector is one of the earliest sectors that have beenopened to foreign direct investment, yet in China the proportion of FDI in agriculturalsector to that of the whole country is very low. This paper is going to analyze thestatus quo and the characteristics of FDI in Chinas agricultural sector from two pointsof view, that is, the horizontal and vertical angles. In the consideration of Denning'sEclectic Paradigm of International Production, we will analyze the reasons why Chinahas attracted so little FDI in agricultural sector. On the other hand, some developingcountries have also provided much valuable experience in the attraction andutilization of FDI in agricultural sectors. By comparison, we will make out thedifferences in the utilization of FDI in different countries and put forward somesuggestions on the government policies in the attraction and utilization of FDI inChina's agricultural sector in the future. This paper works on the following fourquestions: First, the status quo and characteristics of China's utilization of FDI inagricultural sector;Second, the economic explanation for why China's FDI is so littlein this sector;Third, the experience and lessons some developing countries haveaccumulated;And at last, some policy suggestions on how to promote China's FDI inagricultural sector.