The Impact Of FDI To Current Account In China

Since reform and open policy, our country had actually used the Foreign Direct Investment(FDI) surpassing 600 billion US Dollars. During the past more than 20 years of capital bring-inprocedure, the FDI has truly had the influence to our country's international payment balance.And among these influences, it had no doubt that the influences to the current account revenueand expenditure occupied the main status. Actually, the influences of the FDI to current accountis the result of the Foreign capital enterprise behavior, but not merely through the circulation ofcapital to realise.Under concrete theory instruction, this article uses the correlation page layout data: currentcapacity of FDI, cost of the labor force, exchange rate, market scale, open degree, the growthof GDP etc. carring on the relevant analysis on the trade account revenue and expenditure. Thusobtains the influence of FDI to our country's trading revenue and expenditure; Profits from theinternational experience, this article analyzes the influences of the FDI profit remittance to ourcountry's income accounts.After 1990s in our country, the favorable balance of the trading projects from the currentaccount certainly cannot completely regard as is the FDI contribution.(except the year of1993),but only can sum up to the contribution which grows for the economical growth and thedomestic overall exportation ability. Our country has a long-term serious unbalance between FDIand attracting FDI. The scale of attracting foreign capital goes far beyond the scale of FDI. Thiswas the direct reason of our country's investment income account trade deficit.