Research On Impacts And Countermeasures Of Foreign Direct Investment In Ningbo’s Logistics Industry

Recently, it’s an international consensus that logistics is an important guarantee for thedevelopment of primary industry and secondary industry, and also an important factor to measurethe national power and consumption status of a country. Since1990s, Ningbo is regarded as one ofthe three cities which have the most potential in logistics, and has attracted lots of FDI because ofits unique advantages of the port and strong momentum of economic development. However,although Ningbo’s logistics industry has made significant progress in attracting FDI, there are stillsome problems in investment behavior, such as irrational structure, small scale and single capitalintroduction. Meanwhile, Ningbo’s logistics industry also has some disadvantages, such as lowlevel of service, lacking of will in transformation and upgrade, and lacking of professional talentsin logistics. In this background, we should combine Ningbo’s logistics industry with FDI, researchthe impacts of FDI in Ningbo’s logistics industry, study how should Ningbo’s logistics industryabsorb and use FDI effectively, and clarify that whether Ningbo’s local logistics company canstudy and master the advanced technology and management concept from FDI.In this paper, we firstly analyse the status quo of Ningbo’s logistics industry and the scale andproblems in attracting FDI. Secondly, we qualitative analyse the impacts of FDI on Ningbo’slogistics industry from both positive and negative angles, and we particularly focus on thespillovers of the advanced technology and management concept, such as Warehouse ManagementSystem (WMS), Electronic Data Interchange (EDI), Global Positioning System (GPS) and RadioFrequency Identification (RFID). Thirdly, we quantitative analyse the impacts of FDI on Ningbo’slogistics industry by using stationary test, E-G co-integration test, granger causality test andestablishing error correction model, then we get the conclusion that there is a long-termequilibrium relationship between the development of actual FDI capital amount and the promotionof Ningbo’s logistics industry total production output, actual FDI capital amount is the reason topromote the development of Ningbo’s logistics industry, and every1%in increase of actual FDIcapital amount will cause0.1854%in increase of Ningbo’s logistics industry total productionoutput. Finally, base on the conclusion of qualitative analyse and quantitative analyse, we givesome useful countermeasures and suggestions on attracting FDI and its own development ofNingbo’s logistics industry.