The Study Into Crowd In-out Effect Of FDI About China's Wholesale And Retail Trades

The Study into Crowd in-out Effect of FDI about China's Wholesale and Retail Trades belongs to the field of International Trade. Wholesale and retail trades are an important part of the Chinese tertiary industry; it would be full opening according to China's WTO accession protocol after December 11,2004. Domestic and foreign scholars have mostly studied the overall effect on the host country for FDI capital crowding-in effect. However, due to the different industry characteristics, expansion of foreign investment into various sectors of domestic capital for investment will also have different effects.Whether FDI in China is to crowd in the wholesale and retail industry investment and how the effect occurs is the focus of this paper. It can be achieved through three specific objectives:(1) determine FDI in China's development and current development of wholesale and retail trades; (2) clear 1997-2009 FDI on China's capital crowding-in effect of the wholesale and retail trades through theoretical and empirical analysis; (3) give the appropriate conclusions and make suggestions combined with the characteristics of wholesale and retail trades.The article uses both the theoretical and empirical analysis, on the basis of the preliminary conclusion of the theoretical analysis, expecting the same results of the empirical analysis; the mainly used is FDI Crowd in-out effect occurred theories, the traditional production function model and the relative Crowding-in model are used in empirical analysis, and operating data with SPSS.The innovation of the paper lies in industry level, there is not much research on the FDI capital Crowding-in effect of the host country on industry level; for wholesale and retail trades, there has no paper, so study from the wholesale and retail trades level is an innovation.