The Analysis Of The Factors' Stage Characteristic Of Chinese Utilization Of FDI

FDI(Foreign Direct Investment) is an investment aiming for getting profits or scarce factors of production in the way of some foreign investors (natural or legal persons) inputting some capital or other factors of production from abroad and having or controlling the right of the company's management. Since China reform and opening up,FDI has flown into China with large amount,become the main form of China's foreign capital utilization to substitute for external borrowing,and made significant contribution to the fast development of China's economy.The paper analyzes the main attracting and utilizing FDI's factors of nine eastern provinces and cities who is more developed in using FDI on the basis of the theories of FDI and the latest study.First,to divide the use of FDI in nine eastern provinces and cities from 1985 to 2006 into stages which is divided into 3 by the year of 1993 and 2002 using qualitative and empirical analysis.And find the main factors of different stages of each province and city on this basis. The paper selects a total of nine indicators belonging to two categories,and through empirical analysis comes to the conclusion that is every stage is the result of traditional economic factors and new economic factors even though the factors are different in different stages.Lastly,it makes suggestions separately to eastern and western regions on how to attract and use FDI on the basis of the result of empirical analysis.