| At the entrance of the 21st century, especially after China's access to WTO, Chinese economy is facing more open competition circumstance, globlized economy and knowledgenizied challenge. It is proved that the development of our economy is closely related to world and its advanced technology brought forth by capital. The utilization of foreign capital can promote the development of our economy in such respects as the adjustment of structure, industrial updating etc.Combining the related theories in economics, this thesis affirms the achievements in FDI, talks about the problems in FDI, and advances some suggestions.The first chapter specifies the development of related theories.Harrod-Domar Growth Model points out that if the developing countries want to realize the fast, stable and lengthy development of domestic economy, they should keep the savings rate to a certainty, and attain the scope of investment accordingly. Double Gap Theory indicates that in the equation I-S=M-X, because the independent variety of investment, savings, import and export, the equation may be imbalance, which means the Gap of Savings and the Gap of Foreign Exchange are unavoidable. The developing countries must increase the amount of capital by attracting foreign capital to gain the indispensable capital for the economy development. Both Harrod-Domar Growth Model and Double Gap Theory deem that the accumulation of capital is the deciding factor of economy development.After the Second World War, technology becomes the key factor of economy development. R·Solow, by integrating the research achievements of others and his, found the New Classic Economy Growth Model under the progressing technology ,Y=A(t)f(K·L). Through his research, E·Denison came to the conclusion that the increase of factor productivity becomes more and more important to the economy development.The last part of this chapter, with the example of Singapore, simply indicates the Double Gap Theory cannot wholly explain the reason of attracting FDI nowadays. In her taking off stage of economy, Singapore had the phenomena of Double Gap, and drew in a great amount of foreign capital to close the Gap. From the later 1980`s, there is no longer the phenomena of Double Gap, but Singapore is still attracting a great amount of foreign capital. This can be explained by drawing in technology.The second chapter shows the achievements of FDI in China.World Bank points out that FDI has become one of the key factors of fast development of Chinese economy. FDI has played the important role in Chinese economy after the implementing the policy of opening up, like promoting employment, increasing industrial productive value and revenue. In the meantime, it is also a great help to Chinese economy transforming into market economy, as it is propitious to founding market-oriented system frame, developing unpublicized economy to pluralize the ownership structure, breaking country monopoly and promoting competition, reforming state-owned firms, liberalizing trade and investment gradually to push domestic economy into world economy system.The third chapter indicates the problems in the progress of attracting FDI.First, China has not Double Gap.In recent year, China has more savings than investment. But where dose the surplus savings go? This indicates that China cannot efficiently invest with domestic savings, so according to the savings investment transforming mechanism, some measures should be taken, in order to change the phenomena of domestic capital leaved unused and a great volume of foreign capital attracted.At present, China has more than one hundred and sixty billion U.S. dollar foreign exchange reserves. These reserves, in the forms of current deposit and treasury bills etc, gain interest and keep value in foreign countries, give up the high investment proceeds in domestic country, and bring about a large opportunity cost of foreign exchange reserves, which cannot realize the most efficient deployment of currency. This explains that the tactic... |
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