The Study On The Quality Of FDI In Jiangsu Province

With the deepening of China's reform and opening up, as well as the acceleration of economic globalization, International direct investment is constantly flowing into China and has a great impact on China's economy. Jiangsu Province as China's largest province in the use of foreign capital, foreign investment has an important influence in all areas of Jiangsu province, and its negative effects have begun to appear. The use of foreign capital is no longer the pursuit of quantity, but rather required to attract high quality foreign investment. In this paper, I establish the quality indicators to analyze the quality of l in Jiangsu, and give the the relevant policy recommendations to improve the quality of foreign capita in Jiangsu.In this paper, the Part I is the Introduction, It mainly introduces the relevant research background, and meaning; Part II: discussion of foreign direct investment-related reasons, as well as domestic and international literature review which provide a theoretical basis for this paper. Part III: The historical Review of foreign capital in Jiangsu Province, which use of the historical data, including four aspects: the project scale; investment in the regional distribution; the distribution of investment in industry; investment success rate. Part IV: establishing the contribution of indicators, focusing on analysis of the degree of contribution to GDP; to export growth; to employment growth; to technological advances. Frist this section provides the qualitative analysis of indicators, second establishing a empirical analysis, to study the spillover effects of fdi to Jiangsu Province. Part V: Computing the potential indicators, this paper identify the problems of foreign capital by a comparative analysis of Jiangsu Province with Shanghai, Beijing, Zhejiang Province, Guangdong Province, and learn the experiences from other provinces and cities, in order to provide the better decision-making direction of attracting foreign investment in the future.Part VI: Give the policy recommendations about improving the quality of foreign capital in Jiangsu Province.This paper combines the qualitative and quantitative analysis ,and establishes the contribution indicators and potential indicator in order to analyze the quality of foreign capital in Jiangsu Province, we use panel data set of Jiangsu's thirteen cities to analyse the contribution of technological progress indicators,and established the radom-model, the model shows that FDI promote the technological progress in Jiangsu Province Provincial ; using the time-series data to analyse the contribution of employment growth, export growth and GDP growth, At the same time using the co-integration test method to analyse long-run equilibrium relationship, results show that the FDI has the crowding-out effect to employment ,promts the GDP but it's very small, and has a gteat effect on promoting exports. The potential indicators show Jiangsu province lags behindBeijing, Shanghai, Zhejiang, Guangdong in the potential of attracting foreign investment. Particularly in the technical inputs, extrusion facilities, these two indators is lowest in five regions. We can see that FDI does not fully promote the development of Jiangsu Province, the quality of foreign capital is not high, Jiangsu Province,should improve the investment environment, enhance the learning capacity of domestic enterprises, strengthen the self-development of local enterprises, use the innovative ways to improve the quality of foreign capital , optimize the industrial structure.