The Studies On Effect Factors Of Foreign Direct Investment From China

In the context of economic globalization, the growing global market, closely linked, the increasingly fierce international competition for China in transition, such large developing country, China's economy is one necessary precondition for sustainable development in economic activities is to make good use of domestic and the international markets. We can see that both our government and domestic companies are already aware that "going out" the importance of open thought of Deng Xiaoping, is "going global" strategy provides a solid theoretical foundation for the new situation in the new era I party a major development strategy of the formation and suggested that "going out" strategy is our government under the new situation of economic globalization and economic development of the internal need to make major policy decisions, is comprehensively improve the level of opening up a major initiative is development of export-oriented economy, the only way to adjust the economic structure of Chinese enterprises participating in economic globalization and an important condition for international market competition, business development and growth of China's international expansion after the inevitable choice for China is to achieve long-term economic and social development, promotion and the world effective ways to common development.In this paper, a large number of domestic and foreign literature and systematically introduce the theory of foreign direct investment, from which we can the causes of foreign direct investment, an understanding of the mechanism and results. On this basis, describes the development of China's foreign direct investment, the first of China's foreign direct investment motives are analyzed in this paper that China's foreign direct investment is mainly to learn foreign advanced technology and experience, the adjustment of economic structure, looking for more resources and funding, so that China's economic structure is more reasonable, so that enterprises have a stronger scientific and technological innovation. Then shows the status of China's foreign direct investment in all aspects, including geographical distribution, industrial distribution and investment of the main features. China's foreign direct investment, more concentrated in developing countries, the gradual diversification of the investment industry, and investment in the main body of the main state-owned enterprises. As China's foreign direct investment started late, with little experience, will inevitably have some problems, such as the lack of foreign investment enterprises in the rational planning, investment objectives are not clear, investors continued to show a single, China's foreign management system is not perfect, relevant laws imperfect.Thirty years of reform and opening up, China has a substantial absorption of foreign capital, foreign direct investment in its high-speed growth. Foreign direct investment reflects a country's comprehensive strength, and the factors affecting the foreign direct investment as scholars focus on the natural aspects. Many researchers from the economic, political and cultural tradition, in depth analysis, some stand on the position of the host country, some from the investor point of view, the influence of foreign direct investment analysis of the factors. This was mainly from the investor point of view, standing on the macro level affecting China's foreign direct investment. And take the empirical method, data processing, the use of multi-factor regression model of the sample, from the perspective of the country to explore investment of China's foreign direct investment. This paper mainly on the GDP growth, exports, exchange rates and foreign exchange reserves of the four factors on foreign direct investment.In the empirical stage, this paper from 1990 to 2009, foreign direct investment, exports, data from the RMB against the U.S. dollar,1989 to 2008, GDP growth and China's foreign exchange reserves data to establish the multiple regression model, through the multiple line regression analysis, we can draw our GDP growth and foreign direct investment has significant positive relationship, which also confirms the development of national economy Quedui China's foreign direct investment leading role.China's exports and foreign direct investment relationship is positive, that is, the export of China's foreign direct investment, facilitating role. Although relatively small role in promoting, but evidence of our exports and the complementary relationship between foreign direct investment, the larger a country's exports, indicating that products in the international market place, can be recognized by consumers, and if our country has been relying on overseas consumer market to foreign direct investment, it will be more acceptable to local consumers, we will be less foreign investment risk. Moreover, China's enterprises tend to be the way of exports, in the open market after the foreign direct investment, resulting in positive correlation.China's foreign exchange reserves and foreign direct investment has a positive correlation between the relationships. Huge foreign exchange reserves to improve China's comprehensive national strength and international reputation of the RMB, China's external payments and increased the balance of payments adjustment capability, so that our government intervention in the foreign exchange market to ensure the stability of the financial system be more capital, while abundant foreign exchange reserves for China's foreign direct investment I provided sufficient financial support. Nearly two decades, as China's rapid economic growth, opening up the deepening, strengthening international economic cooperation, China's foreign exchange reserves also increased rapidly, from 110 in early 90 billion U.S. dollars to 2.8473 trillion U.S. dollars in 2010, World number one, compared with the huge foreign exchange reserves, China is far behind foreign direct investment, therefore, increase foreign direct investment in China, but also ease China's trade surplus is too large, the pressure of RMB appreciation.Finally, on the basis of the above discussion, some suggestions, including GDP growth rate to continue to play well on China's role in promoting foreign direct investment, only China's sustained economic development and fast in order to create a favorable foreign direct investment in the economy environmental and economic base. With the domestic economy, our enterprises will be plenty of wealth and the accumulation of more and more enterprises will be willing to go abroad to seek more space for development, when they more overseas investment guarantee.Continue to promote the integration of investment and trade, exports of China's role in promoting foreign direct investment. We should give full play to the export and foreign direct investment in complementary, rather than the substitution effect. The larger a country's exports, indicating that products in the international market place, can be recognized by consumers, and if our country has been relying on overseas consumer market to foreign direct investment, it will be more acceptable to local consumers, we foreign investment risk will be small. China's manufacturing exports a larger scale, some companies have been more influential in the local, these enterprises to invest overseas, have more established market position, it tends to open up the market. Therefore, our government should encourage these enterprises to "go out", should be gradually established a guarantee system for foreign direct investment, foreign direct investment and further improve relevant laws and regulations, reduce restrictions on foreign direct investment, foreign direct investment in state-owned enterprises simplify the approval procedures. For private enterprises, especially small and medium private enterprises to develop foreign direct investment, and given preferential treatment in terms of policy. To implement preferential financial policies, corporate use of foreign exchange restrictions relaxed.Foreign exchange reserves, foreign direct investment in China has a positive role in promoting, so we should make good use of China's huge foreign exchange reserves, to minimize its negative side, trying to make this wealth of China's overseas investment to provide more funds support, to qualified enterprises to have access to appropriate financial support to expand the market, but also can increase the value of China's foreign exchange reserves. Second, efforts to improve China's tax policy. Our government should continue negotiating with more countries to avoid international double taxation, as foreign direct investment of Chinese enterprises can enjoy the host of the national treatment.