Research On The Use Of Foreign Investment In China's Port Infrastructure

Ports catalyze the economic development of a city or an area. It also plays a key role in the national economy and foreign trade. With the development of the economic globalization, the demand for port service is increasing, whereas many investors are not willing to invest on ports because of the high risks and the long term to recover the cost. There has been much discussion recently about the contradiction between the insufficient capital supply and the urgent need for enlarging port capacity. So the issue has now moved to the top of the agenda as how to raise enough funds for port construction.Having discussed the present situation of the financing and management systems about ports, the thesis analyses the necessity and possibility of absorbing foreign investment to construct ports in China. After that, some advice is proposed on that. First, it analyses the current and future condition of the foreign investment source and gives some suggestions. Secondly, an optimal scale for foreign investment is suggested based on the analysis of the reasonable proportion of the foreign capital. Thirdly, the present writer puts forward a proposal on the constituting of the foreign investment with regard to the current unbalanced distribution in various areas and the excessive use of Foreign Direct Investment (FDI). Fourthly, a detailed elaboration is given on the possible ways of foreign investment and the advantages, disadvantages and the suitability of constructing port infrastructure are weighed. At last, since China is joining the World Trade Organization (WTO), the thesis makes a study on our country抯 foreign investment policies and concludes that using an eclectic policy could create an agreeable environment for foreign investment.In this thesis, a large number of data, charts and economics theories are included. Both qualitative and quantitative analyses are used and the formerII-Vdominates the whole piece. For instance, 搕wo-gap model?and 搕he debts-period theory?verify the necessity of absorbing foreign investment on ports in China. Qualitative analysis and regression model are applied in drawing the conclusion that more foreign investment is needed in the construction of ports in China. The return ratios of the programs sponsored by the World Bank from 1974 to 1992 demonstrate that the investment on ports is profitable. It is expected that by using this kind of methods the proposals in the thesis will be more scientific and practical.In conclusion, It is definitely necessary and feasible to attract investment to build ports in China on an optimal scale. Especially, it is wise for us to get more loans from worldwide financial organizations such as the World Bank and attract more Foreign Indirect Investment (Fll) from Europe and America. It is essential to favor foreign investment with national treatment to create good circumstances for investment.