On The General Theory Of Fdi Moderate Foreign Capital Scale Of Zhejiang

The situation of the retardment of foreign direct investment in Zhejiang Province harassed the acdemic and government municipal department, comparing with the high level of economical development. The annual FDI flow into the province is about one billion or so, whereas GDP is well above 600 billion. The traditional theroy enclosed that the purpose of untilizing FDI in undeveloped country is to make up for the gap of foreign currency and deposit. But in zhejiang there exists no currency and deposit gap yet, thus we can forsee there's no inherent motivation to enlarge the FDI amount.The thesis described the theory and motivation of FDI, as well as the affection of FDI occurred to the economic development. Based on the above analysis, bring forward the conception of the optimized scale of utilized FDI. establishing the evaluation systerm of FDI, on basis of the above mentioned conception.The third part of the article concerns about the application of the theory to the Zhejiang Province. According to the appraisal system, the optimized FDI scale must comply with the GDP growth and the assimilation capacity , and the structure of FDI must be in reason. We work out a new economic mode to give the Province a whole judgement of its attracting FDI factors. Based on the results, some strategical proposal was brought forward in the last part of the thesis.