Reserach On The Trend Of Single Proprietorship In Foreign Direct Investment In China

The foreign direct investment has entered China for over 20 years. With the development of foreign direct investment in China , the trend of single proprietorship in foreign direct investment becomes obvious, especially since 1997. The foreign direct investment has promoting effect on the economic development of China, why the trend of single proprietorship in foreign direct investment appears, what effect will this trend bring China and what we can do to face this trend are all meaningful subjects to research.The thesis summarizes the theories about the cause of single proprietorship in foreign direct investment and its effect on amphitryon country. The thesis begins with the process of foreign direct investment's development, describes the present and past status of foreign direct investment with exact figures. It analyses the causes of single proprietorship in foreign direct investment theoretically from two aspects, i.e. the point of amphitryon country and the point of the multinational corporations; and utilizes the method of GAME THEORY to analyses the causes empirically. In this way the causes relating analysis should be intact and more convictive. As to the effect of single proprietorship in foreign direct investment on our technology advancement, domestic investment, labor employment and industrial structure etc, I use the theory of TWO-GAP-MODEL to analyse. On the basis of the above theoretical analysis, I take Tianjin city as an example to research empirically by the method of regression. After the intensive analysis of active effect and negative effect which the trend of single proprietorship in foreign direct investment brings to us, I make some feasible suggestions to our government and enterprises to cope with that trend.