A Study On The Relationship Between The Foreign Investment And The Difference Of Market Economy Among The East, Middle And West China

Since 1978, Reform and opening up has remained the themes of economy development in China. On one hand, the successful deepening progress in economy reform has greatly liberated practical productive forces and relations. On the other hand, it has immensely prompted the process of our economy system reform and market economy. As we know, market economy is the major reflection of economy system reform, and attracting foreign investment is the core content of opening up, therefore, the paper carries out an empirical study in foreign investment and the great regional difference in the development of market economy.As the main impetus of economic growth in China, market economy has fully developed the initiative and enthusiasm of different subjects of market economy and has exploited the potentialities of economic growth. During the process of opening up, by prompting economic system reform and innovation, accelerating the development of market economy, foreign investment has become the main influential factors of market economy. Nevertheless, as the development of market economy , considering market economy levels in eastern part of China being relatively high, and the increasing passive influence exerted on the economy development of eastern part of China by foreign investment, meanwhile, market economy levels in the middle and western part of China being at a low level and having a vast potentiality, the government should call off preferential policy for the foreign investment in eastern part of China and take active measures to invite foreign investment to middle and western part of China. The fruit of this paper is to reconsider the inviting policy of foreign investment from the point of market economy and to decrease the recognition difference between scholars and local government concerning attracting foreign investment.This paper mainly analyzes the great regional difference in the distribution of foreign investment which has led to immense gap in the development of market economy in eastern part, middle part and western part of China. Foreign investment has a close relation with the development of market economy in China. The eastern part of China attracts more than 85% foreign investment, which lead to a relative high level of market economy. While in a long time the foreign investments in middle and western part of China lag behind, as a result, the development of market economy in the middle and western part of China is delayed. To sum up, in this paper empirical analysis and standardize analysis, qualitative analysis, quantitative analysis and comparison analysis are implemented synthetically to do this work.