A Study On The Economy-facilitated Effects FDI Made Over Anhui Province

The scope and scale of FDI in China and the associated influence have been increasing since the Reforming and Opening-up policy. As an inland province, Anhui has relatively less export-oriented economy, especially the non-significant impetus of FDI. However, Anhui has the geographic advantages as a transition zone between the west and the east, and these advantages are becoming increasingly prominent with the sweep of the reforming and opening-up from the east to the west.Recently, Anhui has been brought to the developing frontier by the development of Yangtze economical zone led by Pudong Shanghai. It creates a great opportunity to develop Anhui's economy. The Anhui government also notices that and initiates the opening-up policy to attract FDI. Under this circumstance, the research on the relation between FDI and Anhui's economy is becoming more and more important. Various researches identified that the FDI is one of the driving forces to Anhui's economy; However, no comprehensive analysis has been done. This paper will focus on the impetus of FDI to Anhui in different areas.This paper summarizes the progress of FDI in Anhui, analyzes its characteristics and limitations. In addition, with support of the Eviews software according to the statistical figures of Anhui, it comes to the following conclusion: (1) FDI has a positive effect on economic growth in Anhui.(2) FDI can supplement domestic saving deposits and promote the capital formation. What's more, it enhances the quality and efficiency of capital formation. (3) FDI promotes the quantity and optimizes the structure of foreign trade in Anhui in the long term. (4) FDI can provide certain employment opportunities though its effect is small. But these positive effects are fairly limited.The reason for these phenomena can be found in both FDI and Anhui. On one hand, the FDI still has relatively small scale, irrational structure and low level of technology; On the other hand, Anhui's capability to attract and absorb FDI has not been developed completely.Therefore, improving Anhui's attraction to enlarge the scale of FDI, optimizing the structure of FDI, enhancing the absorption and promoting the spillover effect is very important for enhancing the economy-facilitated effects of FDI in Anhui.