Research On FDI's Effects On The Economic Development Of China

With the accelerating space of economic globalization, China is more and more becoming a most attractive country for foreign companies to invest. The paper is based on the analysis of FDI's effects on China's economic development. I find scarce studies on what impact FDI have made on China's economic development in detail before. In order to explain and prove the effects detailedly, I use some economic theories,logistic reasoning,data,charts, and so on. The objective is to clarify FDI's five main effects on China's economic development, which are technology spreading,industry upgrading,trade competitive capability,regional economic development and employment enlarging. I wish my paper could offer you a FDI's effect system that make the reader easier and clearer to grasp the effects that FDI is making for China's economic development. Meanwhile, I find out some negative factors that will influence China to make the best use of FDI, so I provide some suggestions to weaken these negative factors. The paper is made up of eight parts. The first part is to clarify the research having made for the issue and express my writing objective. The second part is to give FDI's definition and review the FDI's elemental theories. The third part is to describe the FDI's situation in China at present and analyze the factors that attract foreign company to invest in China. The forth part is to be involved in technology spreading, with which I refer to some factors that obstacle FDI's positive function and give some suggestions to solve it. The fifth part I provide the conception of industry upgrading; tell readers how FDI is contributing to China's industry upgrading and covering with some aspects that maybe weaken the active effect. In the end, I give some suggestions. The six part,the seventh part and the eighth part, have the similar paper structures like the forth and fifth , but differ in the topics. The sixth part is relating to trade competitive capability; the seventh part is to mention regional economic development; the eighth part is to put forward to employment enlarging.