Research On The Relation Between FDI And Economic Development In Fujian

Since reform and opening up, especially socialism market economy system was established from 1990's, China has gained great progress in utilizing foreign capital which has been playing important role in China's economic development. Fujian is one of Chinese FDI concentrated places located south-east China. Actually, more and more FDI has changed a lot in Fujian economic system, such as make up the insufficiency of constructed funds; promoting economic development; accelerate industry structure adjustment; increasing tax incomes and employment expansion. At the same time, Fujian has been closely linked with the rest of the world economically. But negative effect on FDI must be reflected. A correct understanding of FDI with Fujian economic growth, industrial structure adjustment for rational utilization of FDI, promoting economic development and achieving the economic sustainable development has become important significance. In order to investigate the relationship between FDI and economic growth as well as industrial structure adjustment using the method of Economic Measuring Model in the paper, the results showed that there was a positive correlation between FDI and Fujian economic growth, in the same way, FDI also promoting Fujian's industry upgrading and technological innovation. After analysis FDI on existing problems and some strategic countermeasures about Fujian utilizing FDI were put forward to.