Research On The Development Level Evaluation Of Utilizing Foreign Capital Of Jilin Province

Utilizing of foreign capital is an important component of the Open policy of our country, and also it is an important component of our foreign economic activities. In the past decades, foreign capital has made an outstanding contribution for China's economic growth. However, foreign capital is a double-edged sword, it will bring negative effects while promote China's economic development, such as the crowding-out effect of domestic capital. Especially when China has joined into the WTO, domestic market internationalization rapidly, foreign product and capital inburst into China largely, how to do a better job in attracting foreign capital, how to enhance the guide and control of foreign capital, and improve the development level of utilizing of foreign capital become an important task.Under the new situation of economic globalization and China's entry into WTO, the new policy of revitalization of northeast which is the China's old industrial base brings a new developmental opportunities and challenges to the utilizing of foreign capital of Jilin province, whether can we integrate the external resources with the economic development and make it work for the economic development of Jilin province, has become the important content of enhancing the whole competitiveness of Jilin's economic. In the more than 20 years of Reform and Opening up, the use of foreign capital of Jilin province has made remarkable achievements. However, it is far from enough that only these achievements, under this new era background, there should be more effective way to use of foreign capital, and bring the development level of using of foreign capital to a new level. When advancing the size and quality of using of foreign capital, making it work better for economic construction of Jilin province, and making which plays a critical role in optimizing the industrial structure and advancing the competitiveness of the economy of Jilin province.In this paper, I had taken an in-depth and amply research on the development level of utilizing of foreign capital of Jilin province. Firstly, I had taken a general studies on the basic theories of using of foreign capital, listed out some theories which is characteristics and hit the high spots of them, such as two gaps theory, the product life cycle theory and the enterprises advantages theory etc. Secondly, this paper has taken a deeply research on the development situation of utilizing of foreign capital of Jilin province, took a detailed research on the development course of foreign capital of Jilin province, and studied the situation of foreign capital from size,structure and other aspects, also compared to Heilongjiang and Liaoning about utilizing of foreign capital. Thirdly, Based on the research of basic theory of foreign capital, this paper gave a clear definition for the meaning and composition of utilizing of foreign capital development level, considered that the development level of utilizing of foreign capital should include the level of scale, structure, speed and quality. As well as did an in-depth research on the determinants of the development level of utilizing foreign capital. This paper did a actual research on the determinants of development level of foreign capital in conclusion of the predecessors's research results which is basis on the actual situation of Jilin province and adopted the method of multivariate linear regression.Finally, on the basis of theoretical research before, this paper established a suitable evaluation system about the development level of foreign capital according to the actual situation of Jilin province. According to previous research the evaluation system includes scale, structure, speed and quality of four aspects, and used the principal component analysis method to evaluation the development level of utilizing of foreign capital from longitudinal and horizontal two ways according to the evaluation system. Longitudinal evaluation from 1996-2005, and horizontal evaluation between the most provinces of China, particularly the northeastern provinces. This paper Indicated out the position, shortcomings and advantages of development level of utilizing of foreign capital about Jilin province. This paper gives out several practical, concrete proposals which are to improve the development level of utilizing of foreign capital for Jilin province according to the evaluation and fundamental research results in the last, and finds a scientific way to improving the development level of utilizing of foreign capital and promoting the foreign economic development healthily for Jilin province.