A Study On The Effect Of Foreign Direct Investment To The Economic Growth Of Jilin Province

In the 21st century, as the world economy integrates, the economy among countries merges in various means, and the international capital flows more frequently. As the most important channel for international capital circulation, FDI becomes one of the most important economic forces in the world, which exerts great influence on the host country. Many researches conducted by scholars home and abroad show that FDI can promote the economy booming not only by capital building, but also by technology progress, trade promotion, and industrial structure optimization. As the State Council deployed the strategy of promoting the development of the old industrial base in northeast China by further carrying out the opening-up policy, with its fine infrastructure, solid heavy industry bases, abundant raw materials, rich resources and great market potentiality, Jilin province has absorbed large amount of FDI. However, there is still a long way to go to catch up with the Chang Chiang Delta and Chu Chiang Delta areas. Meanwhile, Problems such as inadequate distribution of FDI in different industries still exist in Jilin province. Under the background of the economic globalization, based on historical process and present situation of FDI utilization in Jilin province, this paper aims at exploring the influential factors of economic development of Jilin province and finding out the positive correlation between the two aspects. After analysis I also find that there are some problems in FDI of Jilin Province: 1st, the scale is small, and the total quantity of foreign capital is insufficient, the gap between the investment of foreign merchant contracted and the actual amount is much too big; 2nd, the industrial constitution with foreign capital is incompatible, foreign capital mainly concentrated on the second industry, while relatively few on the first and the third industry. 3rd, the technical level of these enterprises of Jilin Province is low, consistent industrial development is lacked, ability to absorb new technical is bad, and many related enterprises could not satisfy Foreign-funded enterprise's specification within FDI.Therefore the most important thing in Jilin Province's economics development is to find out how to guide FDI to make a correctly industrial construction, how to enhance the provincial economy strength and the social satisfaction, as well as regional economy coordinated development. Finally, this paper proposes target-oriented suggestions for Jilin Province' FDI policies: 1st, to complete the industry chain and supply chain and the corresponding foreign capital policy; 2nd, to match FDI investment, and promote the industrial upgrading; 3rd, to strengthen the market reformation, to transform the government function, and to promote the environment construction; 4th, to speed up the Tumen river region's development, to absorb the Northeast Asia countries particularly Japan and South Korea's investment; 5th, to improve education, and to develop human resources training.