Western Development: Government Policies And Foreign Direct Investment,

What this text paid close attention to is about the question of importing the foreign investment., which includes both the foreign indirect investment and foreign direct investment (FDI). Among them, more and more people paid their attention to the function of FDI to the economic development of the host country. In the last 10 years of the 20th century, the most noticeable phenomenon in the course of China抯 opening to the outside world is that FDI is increasing swiftly and violently. China has been the largest developing country in absorbing FDI for 6 years in succession, and only second to U.S.A., and it becomes the host country of the second largest international direct investment of world. From 1979 to 1 999,China had actually used the foreign capitals of 267,315 million dollars in the whole country and more than 290,000 overseas-funded enterprises put into operation there. The foreign investments have entered agriculture, manufacture, service trade, and almost all the industry fields. In some area, foreign investments have already constituted a suitable proportion and reached considerable depth .The transnational direct investment has brought tangible resources, such as capital, technology and management skill, and invisible resource to our country. It improves production capacity and manages quality of our country, causes enlargement of market, brings the effective transformation of production factors by competitiveness, and accelerates the production factor flowing, etc. Under the condition of western-China development, analyzing the factors that influencing the foreign direct investment, making the suitable foreign direct investment policy and attracting them to enter vast west area are undoubtedly an important means of solving the fund gap of the development of the West Regions, I driving western industry upgrading and solving the western employment problem. When the traditional foreign direct investment theory analyses those influencing factors of the foreign direct investment, it always explains the monopoly advantage of the enterprise, the life period of the products, the comparative advantage of the industry, the interation of the enterprise and so on in terms of investor. These factors have explained from a profile the reason that the enterprise carries on the direct investment abroad. However, in fact, foreign direct investment behavior is a two-way behavior, which involves the investment party and capital receiving party and their subjects are not totally unanimous, and, their tactics to investing can influence their investment behaviors. Theoretical research only from one side makes the theory imperfect and unsymmetrical from the very beginning .On noticing the question, scholars already make great efforts to explain foreign direct investment in terms of host country. However, I notice, in analyzing relationship of foreign direcL investment and the host country, a efforts seem to be weak. Planning proceed from this angle in this text, I will analyze the impact of foreign direct investment policy of the government on FDI and its response by ruling theory, public-choosing theory and corrupt economics. I hope on one hand that it is sure to be supplementary to the existing theory on the other hand, I even hope to offer certain theoretical direction for the western government to make the foreign direct...