Foreign Direct Investment And Yunnan Economic Growth

Large numbers of researches showed that Foreign Direct Investment(abbreviated to FDI)can play an important role in promoting economic growth under certain conditions, and so attracting FDI becomes an important means for developing countries and regions to promote their economics.Yunnan is one of China's economically backward provinces,the FDI in Yunnan had a rapid growth from comprehensive western development,but the scale of it was still very small and has huge gap compared with the developed areas of China.At present,few concern and researches were on the use of FDI of backward provinces;the closest researches were the impact of economic growth from FDI in China's western region, and the researches especially empirical analyses on the function and influence factors of FDI in Yunnan were relatively weak.This paper studies from two points of views;one was the impact of FDI to Yunnan's economic growth;two was the impact of internal economic situation in Yunnan Province on FDI.First,through the empirical analysis of the relevance between GDP and FDI of Yunnan Province and the impact of FDI to technological progress in Yunnan,we found that FDI has an impact on GDP growth in Yunnan Province,but the impact was small;the impact of GDP to FDI growth was not significant.Improving the level of economic opening up of a region is conducive to promoting the upgrade of the technology efficiency; however,the impacts of Foreign Trade Dependency and FDI dependency to technical efficiency of Yunnan were not significant.This may be related to the small-scale of FDI in Yunnan and poor technology transfer access of Yunnan.Second,for the impact on FDI of Yunnan's own economic environment,here studied the source countries of Yunnan' FDI.There has diversification source countries of Yunnan's FDI,but still were mainly from Asia.Yunnan has comparative advantages in abundant natural resources and geo-cultural characteristics,however,infrastructure,the level of economic development,human capital and institutional factors had urgent need to increase.At the same time,the industries distribution of FDI in Yunnan was uneven; Yunnan's unreasonable industrial structure was not conducive to attracting FDI,and the role of Yunnan's industrial policies in attracting FDI was not evident. Therefore,as the economically backward areas,Yunnan needs to attract large-scale of FDI.In attracting FDI,Yunnan should attention to:Macro environment of economic and policies had significant impact of FDI inflows of Yunnan Province,therefore Yunnan should to pay attention to grasp macro environment of economic and policies when attracting FDI,and actively create conditions that are conducive to it.Yunnan's economic was backward;it should actively expand the overall size of the economy and the market capacity,form and strengthen industrial agglomeration effect.At the same time,speaking from its own environment,Yunnan Province should speed up the pace of structural reform,optimize the environment for the development of market economy;give full play to Yurman's comparative advantage of abundant natural resources and geo-cultural;further accelerating infrastructure construction,improve the investment environment in Yunnan;establish a development pole,bring along the development of FDI of Yunnan Province through the development the central area;improve the education environment of Yunnan to enhance the level of human capital;speed up industrial restructuring to optimize the industries distribution of FDI in Yunnan.