The Developmental Potential Research Of Utilizing Foreign Capital In JiLin Province

Using foreign capital is also called attracting foreign capital or introducing foreign capital, namely introduce the overseas capital (international capital), let them operate interiorly and promote the development of our country economy. In an open economy environment, if a country's economic development is restricted by the insufficient of domestic resources, it can obtain the integrant source through using foreign capital. The overseas resources inflow may solve deposit insufficiency, shortage of foreign exchange, sparsity of capital and so on, and may introduce the advanced technology and management, thus promote economic development. In the world economic history, so many countries successfully develop their economy by using foreign capital. Such as, USA after Civil War, Japan after "Meiji Restoration".In order to promote Chinese economic development, our country also tried to attract foreign capital. Under this tendency, some scholars have do some research oh this. Many of Chinese scholars using western theory and traditional analysis method to explain various problems in using foreign capital, and they have make some development on western theory .from 1978, our country began to do the research on using foreign capital, this mainly due involved: whether use foreign capital,why to use foreign capital ,how to use foreign capital and so on. About the research on the potential using foreign capital, in order to show different countries'potential and achievement on using foreign capital, UNCTAD used two guide lines on<< World Investment Report of 2002>> ,one to evaluate the achievement exponential of using foreign capital, another to evaluate the potential exponential of attracting FDI. Ge Shunqi used this method to evaluate using foreign capital in every province.JiLin began to use foreign capital after the new china established (because JiLin occupied 11 of 156 big projects from Soviet Union) therefore Jilin Province's foreign capital use was at the same time as our country. In recent years, JiLin Province has also obtained some delightful achievements in using foreign capital. In 2005, the contract amount of using capital is 942 million dollars, actual amount is 1.151 billion dollars, and the actual using rate is 122.18%. The foreign capital has greatly promoted the economic development of Jilin Province.This paper has do some analysis on the potential of using foreign capital in JiLin province .guided by foreign capital theory, based on the achievement of former people, integrate the characters of JiLin province,This article has conducted the research on Jilin Province using the foreign capital development potential. The potential is one kind of non- reality and latent ability, the development is a sustaining and variational process from small to big ,from weak to strong. Therefore, the development potential is the future potential of the system .it's a kind of latent ability, not a actual ability. it's biggest value is transfer the latent ability to be actual competitive ability. The development potential of using foreign capital is a kind of ability that is latent,need to be stimulated to exert and can promote the quality and quantity of using foreign capital.In order to reflect the potential condition of using foreign capital in JiLin Province externally and authoritatively, this paper use the method used in UNCTAD's << World Investment Report of 2002>>,then compare JiLin ,HeiLongJiang, LiaoNing and the whole coutry's potential exponential and achievement index of using foreign capital. Obtains the nearly ten years average achievement exponential and potential exponential of JiLin Heilongjiang Liaoning and the whole country. The result tell us this exponential of JiLin is the lowest.This paper analyses the impact factor of JiLin province using foreign capital from international, domestic and local. This paper analyzed the impact factor of using foreign capital potential mainly using quantitative method, assistanted by qualitative method. Abstract some quantificational and exercisable factors to compose a guide line system,then use SPSS to find out the primary impact factors. They are average per person GDP, export amount /GDP and the number of university student per ten thousand populations .These three factors do not represent the temporary quantity, and all have a important characteristic is the successive of history, they are the accumulate of long-term economic activity, today matter are the accumulation of former , also possibly will be the discount of future (demands to future).in order to understand the rule of their change, Then analyzed the change of the three factors themselves,Per person GDP is to reflect the level of economic development, import and export amount /GDP is to reflect the economic opening degree, the university student number in every ten thousand population is to reflect the potential of technology development. The development potential of JiLin using foreign capital is mainly impacted by economic development level, economic opening degree and technology development potential. These three aspects are also interrelated with the development potential of using foreign capital,therefore, we should improve the development potential of using foreign capital in jilin province based on the three aspects.Integrate all of these analysis, Jilin Province should enhance development potential of using foreign capital from promoting policy environment improvement, improving the service to the foreign investment enterprise, raising the level of economic development, enhancing the opening degree and heightening the science and technology level.