Foreign Direct Investment And The Impact Of Our National Economy

As a kind of important way in which internationalization and international division deepen further, foreign direct investment becomes one of the most important economic force in the world day by day and has a deeper and deeper impact on international economy and the society.Since the reform and opening-up policy has been taken in our country, utilization of foreign capitals starts from zero, develops fast and has made considerable progress. Therefore, FDI becomes a important means for developing the economy and promoting foreign trade exchanges gradually. In view of the fact that foreign direct investment is important, this paper carries on in-depth analysis to it.The article deals with the theory of foreign direct investment at first and elaborates several quite influential foreign direct investment theories, such as "Monopoly Superiority Theory", ""International Product Life Cycle Model" and "The Eclectic Paradigm of International Production". These theories lay the theoretical foundation for later analysis. Next is the foreign direct investment structure analysis, including industrial structure, regional structure, structure of way and structure of source. The arrangement of the four aspects is crucial to both the investors and our country, because it determines whether or not they can benefit from the investment and the magnitude of profit. And then the article demonstrates the contribution FDI does to the economic growth of our country.As a criterion for measuring the degree of the contribution FDI does to our economic growth, FDI/GDP rate, from 0.21% in 1983, rose to 3.67% in 2004, and was once up to 6.22%. Basing on the actual data of foreign direct investments and gross domestic product from 1983 to 2004, the paper utilize econometrics software for demonstration testing and the conclusion drawn is: Foreign direct investment increasing 1% unit each time, will promote the gross domestic product of our...