An Empirical Research On Affacting Factors Of FDI Of Anhui Province

Premier Wen Jiabao had firstly brought forward in the Government Working Report in May. 2004 that the building up of Middle Area and accelerating its development were of great significance to enhance our country's competitive advantage, and moreover, there were external needs of balancing and accelerating the economic development in different Areas across China. Concerning the Middle Area, the economic development of Anhui Province is lagged behind, meanwhile, the Foreign Direct Investment (FDI) there is in the similar situation. Consequently, the study of FDI in Anhui Province is of practical significance. Therefore, this paper will study and analyze the affecting factors of FDI in Anhui Province, the general content are listed as follows:After carefully studying domestic and foreign research about affecting factors of FDI, then we studied about affecting factors of FDI in Anhui Province.In the next place, this paper reviewed the history, reality, characteristics and difficulties of FDI in Anhui Province; and analyzed the differences between different regions in Anhui Province. Then we chose some relative variables of FDI and conducted empirical test through 1985 to 2006. We concluded that although potentiality of Anhui Province market has some attraction to the foreign investors, but the irrational industry structure prevents them from investing in local industries, and the wage is also a barrier to attract the FDI.Thirdly, this paper discussed the advantages of FDI in Anhui Province, such as accelerate the economy development, promote the regulation, update of its structures and speed the innovation. Improving the investing environment, attract the FDI, then promote the economy development are the meaning of enhance the FDI, and that is why I study so many cases.Finally, according to the results of my study, we bring forward some suggestions on how to attract FDI, such as, speed up the city construction process, make use of cities' centralization and region economy's radiation effects. By these means, we can reduce the side effects that FDI brings to the harmonize development of regional economy. We should continue to enhance affecting FDI and focus on improving of irrational industry structure in particular regions. By taking these methods together, we can make FDI do the benefits for the economy development our Anhui Province.