An Analysis Of The Impact Of FDI On The Economic Development In Western China

Because of thirty years reforming and opening，China’s economic developsrapidly and gain great achievement. It’s much depends on the introduction of ForeignDirect investment. With the fierce of economic globalization, FDI develops quickly.Thirty years of reform and opening experience proved that FDI is favorable tostrengthen china’s comprehensive national strength and promote China’s economicdevelop.However, we can’t ignore the negative impact due to introduce FDI, for example,because of different region introduce FDI scale gap very big, cause eastern, centraland western development gap more greater. This greatly affected china’s economichealth, stable and harmonious development. At the same time, it’s will threat china’sunite and national defense security.On this base, the paper first introduce present situation of western uses FDI,make comparative analysis on the eastern, central and western introduce FDI, pointedthe reason that cause different regions use FDI imbalance. Analysis the successfactors that impact FDI largely flow into eastern and take inspire to western region.Indeed, because of geography, history and policy of national development, comparedwith eastern region, western has some inherent deficiencies, such as located a remoteregion, population scattered, transport undeveloped, poor infrastructure, people’sideas backward and lazy. But western also has its unique advantages, such as largenumber of mineral resources and natural resource, and there are many specialagricultural products.The early days, bringing foreign direct investment to China was opposed by us.They believe that the introduction of foreign capital is bound to have certain impactmany industries of China. Then after a period of development and re-understanding,people begin to emphasize rational utilization of foreign capital. According to thetheory of development economics, the main factors affecting a country’s economicdevelopment has three aspects: the growth of capital, the growth of labor force andprogress of technological. However, a country’s economic growth depends largely onthe capacity to accumulate capital and attracting foreign investment. For China’swestern region, lacking of external funding is the key issue affecting its economicdevelopment. Therefore, how to accelerate absorbing more FDI in western region topromote economic development become an urgent issue,...