A Comparative Study Of Absorbing Foreign Direct Investment Between China And India

Once the centre country as agricultural world, China and India went through transformation from declining to rejuvenation in modern times, and carried on the economic reform at the end of the 20th century. Since China carried out the policy of reforming and opening, foreign direct investment has swarmed into China, and China became the biggest country of absorbing FDI in the world in 2003. In recent years, an important achievement of Indian economic reform is that its foreign direct investment grows tremendously. Although China and India are both big developing countries, foreign direct investment has played different roles in their economic development. The comparative analysis between China and India is meaningful.This thesis attempts to conduct comparative research on such aspects as the scale, flow direction in industries, source, policy of direct foreign investment, safeguarding the economic safety in China and India, and analyses not only superficially but also deeply. The thesis abstracts the influencing factors based on the theory of foreign direct investment, combines with the former research about the influencing factors of foreign direct investment. At the same time the thesis aims at the given situation of the two countries, confirms the influencing factors of foreign direct investment of China and India. The thesis tries to carry on quantitative analysis combining with qualitative analysis on the factors that influences foreign direct investment. Through the comparative analysis of absorbing foreign direct investment between China and India, the thesis finds out the problems existing in the utilizing of foreign direct investment in China. After studying the experience and lessons from utilizing FDI in India, some constructive suggestions are given for our government and enterprises to further promote absorbing foreign capitals.