Foreign Direct Investment And International Competitiveness Of Our Industries: Relationship Effect Mechanism And Policy Analysis

In the recent process of China's economics reform and development, it's a significant subject to probe into the relationships between FDI and our industries' international competitiveness and their effects. The research related to this subject is not only good for us to survey and summarize the fundamental practice and experience of utilizing FDI since the Reform and Opening, but also has direct guiding function in optimizing the foreign investment structure and regulating the foreign investment's actions.Based on the theories of FDI and International competitiveness of industries, with the practice of foreign direct investment in our all kinds of industries, especially the automobile industry, this article aims to study the relationship and the related mechanism between FDI and the international competitiveness of our industries both theoretically and demonstratively. To begin with concluding and pectinating the academic circle's principles and general situations on this issue, and with the facts of FDI's development in China, on the basis of analyzing professor Machael·Baud's Diamond Module and its complements made by professor Dunning, by way of analyzing the relationships between the FDI and the four key factors which would affect the international competitiveness in a country and the two external factors between them, to set up the effect mechanism of FDI and international competitiveness. Then choose the technology high-contained automobile industry as the analysis object, which is on the hip and has a increased FDI in recent yeas, select the TFP, a index which would totally reflect the international competitiveness in the industry, by way of making a regression to FDI and TFP ,to analyze the FDI's effect to our automobile industry's overall international competitiveness; Then using the technical element to demonstrate the FDI's effect to technology development in our domestic-capitalized automobile industry ,and realize that FDI has a positive impact on the improvement of our automobile industry's competitiveness. At last, on the basis of theoretical analysis and demonstration, the article makes corresponding recommendations from two aspects of macrocosmic and microcosmic.