Analysis Of Comparative Advantage In China's Foreign Direct Investment

Since China抯 opening-up to the outside world in 1978. The world has been witnessing China抯 rapid development in absorbing foreign direct investment. Whereas, eitherthe scaleorthetempoofCbina抯FDlisnotso s ctoryowingtothelate andslow development in this field. Yet, with the speeding up of the globa]ization of world economy and China抯 entiy of WTO, it may be predicted that China will catch up by leaps and bounds in her foreign direct investment This dissertation starts fiDm the analysis of the historical development of the traditional comparative theory but the dissertation breaks through the theoretical limits of the traditional comparative theoiy and e~qlores further by pointing out that the comparative theoxy is not only exogenous and static, but aiso endogenous and dynamic .Meanwhile ,it points out that a counny抯 comparative advantage in its DI is decided by its macro-economical and micro-economical environment advantage as well as industrial and district advantage in the situation of open economy and incomplete competition Based on these theoretical analytical results, the dissertation makes detail~Lanalysis on China抯 DI and draws the conclusion that China has gained the comparativeadvantage to a catain extent whether from the domestic and international macro-environment or from the individual enterprises?competitiveness or from the choice of indusUy and district. Fuithemiore, the dissertation points out that China shall speed up developing her FDI for the pnpose of getting comparative advantage through economies of scale and economies of specialization and shall integrate her exogenous comparative advantage with her endogenous comparative advantage to meet the challenge of economic globalization...