Economic Effects Of Zhejiang ODI

Zhejiang province opened to the world at the beginning of 1980. The development of the intercourse economy in Zhejiang is growing faster than other provinces in the country. Zhejiang's Outward FDI developed from scratch. But now, Outward FDI is playing a more and more important role on Zhejiang economy growth. Basing on the change of international and internal policy environment, as well as the great development of transnational investments, this study takes Outward FDI and benefits of home district as the angle of view, and carries on a theoretical and empirical analysis. The conclusion of theoretical and empirical analysis will offer Zhejiang government the policy suggestion relates to his next step of promoting the development of Outward FDI.Based on the analysis of Outward FDI's economic impact transmission mechanism and the status of Zhejiang's Outward FDI, this paper focus on the economic effects of Outward FDI, especially on the trade, industry structure, employment. In recent years, Zhejiang outward FDI is growing at an average rate about 50%, but the total amount is just 0.02% of FDI. Investment on each program is too little, and the main form of Outward FDI is to establish oversea trade company to extend their exports. On the Outward FDI effects of economic, the Outward FDI of Zhejiang is complementary with international trade in the long run. It extends the scale of import and export. On the employment effects, The ODI does not have any effect on Zhejiang employment scale, while improving the employment structure. Zhejiang ODI also improves the industrial structure level through transmitting factors.Finally, I bring forward some suggestions for Zhejiang government to expand the Outward FDI based on the characters of Zhejiang's transnational investment and faced difficult at the angle of government and enterprises.