The Study Of How To Utilize Rationally The Foreign Capital In The Northeast Of China

It is a inevitable choice to attract foreign capital because of the huge capital shortage in the invigoration of the Northeast industrial base. This is theoretically based on Dual-cap Model and its amendment of academic community.In the course of attracting foreign capital, we must first see the new trends of international capital flows and its characters and learn from the experience of international capital utilization both at home and abroad .As for such experiences abroad, the examples of the Association of South East Asian Nations (ASEAN), especially Korea, have tremendous meaning for the Northeast in attracting capital .As for such experience at home, the success and failure of Western area and Southeast coastal area provide valuable experience .Northeast region has its own comparative advantages, which could be greatly demonstrated in its industrial structures, human capital and infrastructure. But compared to the achievement of Southeast area, Northeast region still has a long way to go. This is basically resulted from many restriction factors existing in the Northeast area .In order to utilize the foreign capital more effectively and appropriately, Northeast area should first draw up a major blueprint and pursue proper policies accordingly, and then adopt some effective measures .The major foreign capital attracting policy is attracting capital which complied with the new character of the flows of international capital, connecting the capital with the economy structure of Northeast area ,creating a more favorable investing environment and so on.