The Study Of Influential Factors And Economic Effect Of Foreign Direct Investment In Xinjiang

As one important part of economic globalization process, international directinvestment has become the most important and active factor of facilitating globaleconomic growth.International direct investment can make up the construction fundshortage of one country(region), optimize and update industrial structure andtechnological advance,meanwhile increase employment and expand total trade,contributing to economic development.It is of great significance to exploring regionaleconomic development to study the relationship between locational factors ofinternational direct investment and regional economic growth.Xinjiang has been increasing and improving constantly in using FDI’s scale,quality and benefit since the reform and open-up policy, especially development ofthe west regions.Foreign capital’s inflow has made up the shortage of Xinjiangconstruction fund, introduced an array of advanced, suitable technology, to somedegree optimized and updated industrial structure.What is the factors of influence ofFDI into Sinkiang? How important FDI to Xinjiang economic growth is? etc. Thisessay, from the above points, analyzed the influence factors and economic effect ofxinjiang use FDI.The essay, combining the development process of using FDI, has summarizedthe basic conditions of Xinjiang making use of FDI, analysed its achievement andpotential comparatively, dug its factors of influence systematically and deeply,analysed FDI’s effect to economic increase of Xinjiang through the truth, and finallyraised policies and proposals of its using FDI. Study shows: the important factors ofluring FDI are unique geographical location, abundant natural resources and relativelylow labor cost, and meanwhile there exists unfavorable factors, such as infrastructurenot complete and gathered economic effect not revealed fully, etc. The study indicatesrole in promoting the economic development of Xinjiang’s foreign direct investmentdid not fully appeared, the development of the first and third industries had nosignificant effect, but to promote the increase in the proportion of the second industry,to some extent,to promote Xinjiang’s industrial structure optimization and upgrading.