A Comparative Study Of Attracting FDI Impact Factors Between China And India

Economic globalization is a developing trend of the world in the nowadays, and the capital is flowing among international more and more frequently.Foreign direct investment (FDI) will encourage the finite resources to deploy within world range more reasonable. The FDI will promote economic growth of the capital inflow countries and regulate the structure of industry, so for all the countries in the world, especially many developing countries is competing each other for attracting FDI. Many economists have been studying the FDI decision theory and have achieved many achievements. China and India are two major developing countries in the world. The two countries shared many similar characters in many aspects, but they are different in the quantity, the host country, domestic distribution and the industry of their FDI. During the past twenty 90’s of centuries, the two countries both adopted the policy of attracting the FDI energetically;make every effort to draw support from foreign capital accelerating economic growth.At present, China and India are(?)nsidered the countries having the greatest potential capacity in attracting FDI.The purpose of this study is to look for the effect elements which are related to the difference of the quantity of FDI between china and India, to find out the superiority and inferiority of china compared to India.The study conclusions will be helpful (?)estions for china to confront competition with India in FDI exploitation.The thesis tries to carry on quantitative analysis combining with qualitative analysis on the factors that influences foreign direct investment. In the quantitative(?) this thesis attempts to conduct comparative research on such aspects as the policy of direct foreign investment, scale, flow direction in industries, source, policy (?)t foreign investment, Inward FDI Performance Index Inward FDI Potential Index and Influencing Factors.In the qualitative analysis, the thesis choose the right effect factor build the model and contrast measures result based on the results of panel (?) coming from OECD database 1993 applied, and reach a synthetically study that puts up China-India FDI influencing factors.In the finally this paper submit a policy suggestion on how to make use of Chinese comparative advantage in FDI and how to confront challenge coming from the developing country such as India.