A Study On The Effects Produced By Foreign Direct Investment On Qingdao Economic Sustainable Development

To implement the view of scientific development, utilizing foreign direct investment (FDI) must be beneficial to promote the sustainable development of China's economy. As one of the earliest seaport open cities, Qingdao holds a higher open degree of economy, and the dependent degree on foreign investment is about 8.29 percent points than the average level of the state . Foreign direct investment has already become the important factor promoting Qingdao"s economy. However, some drawbacks have appeared in the course of utilizing foreign direct investment. For instance: for attracting FDI. some local governments sell land at a low price, which brings in the high funds cost and brings out a key clement restrained; some foreign capitals invest into the intensive industry of pollution, and transfer into our city the outdated technology and equipment, which bring out the negative influence to the ecological environment of Qingdao; foreign capitals focus on the lower reaches of ordinary processing trade industry, and correlative utility of industry isn't powerful, which can't drive upgrading of industry and technological progress by percentage of home-made pans .The issues mentioned above have influenced the economic sustainable development of our city to a certain extent.Using theories and methods concerns on regional economics, international investment and sustainable development economics, the paper theoretically expounds in detail the impact of FDI on the sustainable development of regional economy. On the base of discussing the situation and effects of foreign direct investment in Qingdao. adopting theoretical and empirical methods, together with quantity analysis and quality description methods and the comprehensive multi-index system, the paper analyses in detail the effects of FDI on Qingdao economic sustainable development. The result shows that FDI plays a positive role in expanding foreign trade, increasing employment, promoting economic growth in Qingdao. At the same time, FDI plays an unobvious role in resource utilization and development, infrastructure construction, environmental protection and technological progress, even with some negative effects. Qingdao capability of sustainable development has been strengthened continuously and the level of Qingdao's sustainable development has basically reached the medium standard. However, foreign investment in Qingdao has made a stable, or slightly descending influence to the local economy. From this point of view, it is necessary and also feasible to introduce FDI in high technology and environmentally friendly industries for the sake of sustainable development of Qingdao. According the effects of FDI on the Qingdao economic sustainable development. This paper makes some tactics and countermeasures: implementing regional strategy, industrial strategy,economical strategy, human resources, enhancing the foreign direct investment quality, realizing foreign direct investment promotes economic sustainable development in Qingdao.The paper has wide theoretical and practical significance to the research of utilization of FDI and adjustment of opening strategy in Qingdao.