A Comparative Of The Utilization Of Foreign Direct Investment Between China And India

With the speed-up of the globalization process, Foreign Direct Investment is becoming the main force affecting the world economic growth. China and India as two large developing countries has a quite similar history and situation. Especially in recent years, India's economy has been rapidly developed and also maintained a strong momentum to attract Foreign Direct Investment. As two similar developing countries, why India can reasonably attract Foreign Direct Investment regarding "quality" and "quantity" is worth pondering for China. The thesis employs the comparative methods to analyze the difference and similarities of China and India in absorbing Foreign Direct Investment, and combines theory with practice to put forward suggestions for China about the strategy of absorbing FDI.The thesis is divided into five parts. The first part is the introduction, mainly including the background of the selection of subjects, the study survey of relevant documents and domestic scholars, positioning and structure of this thesis.Second part is chapter one of the thesis. This part mainly states the FDI in theory. Theoretical study on FDI comes from the two main ideas, one is from the standard theory of international trade, and another is taken from the industry theory. The main theory includes the internalization theory, the location advantages theory and etc. The FDI theory is the basis to analyze the decisive factors of the foreign direct investment to the host country. The introduction of the FDI theory provides a clear theoretical background and a solid theoretical foundation for the next step of the empirical analysis.