Analysis Of The Western Region Fdi Introduction

The relationships between our industrial policies and foreign direct investment (FDI) are at the core of globalization. Analytical work has recently been developed by a lot of experts and scholars in order to explore the nature of these links in quantitative terms and in qualitative terms.This thesis combines the previous more technical work developed over the last three years. It reveals the complexity of these links but, at the same time, showed the main and negative influence of foreign direct investment on our national economy particularly after the mid-1990s. Analysis results show that though attracting foreign direct investment stimulates the growth of exports from countries of origin and brings development for GDP, the change of our policy on FDI is still complementary to our national economy.Because of Chinese opening-up policy from the foreland to the inland, economic geography area and soft hard investment environment, the eastern region drew on a flood of foreign direct investment relying on the economic foundation and priority policy. Western areas have disadvantages in the economic basis and system environment comparing with the eastern regions, so they haven't strong competition in the drawing of FDI. Thus they drew only little in these years. And all of these strengthen the imbalance of the economic development in China.In order to push forward the economic development in harmony and eliminate regional disparities, the central government implements the westernregion development program and formulates a number of policies and measures for developing the western region. In the recent years, these policies increase the flow of the foreign investment investing in the western region in some degree, but have no rising significantly of it. Researching on the present situation and shortage of area factor and implementing the actually policy and measures to draw more foreign capital to western regions are the research purpose of this article.The article begins with the basic theory foundations for research theories of FDI and on FDI decided by location theory. It builds the location factors through analyzing all of the theories. Then it analyzes the change of the strategy of location factors and the present situation of location choice for the FDI. Then it selects several location factors and researches the present situation and shortages on the investigation of cultural heritage of location factors. Finally, it puts forward some suggestions and measures.