Empirical Study Of China’s Foreign Direct Investment

In recent years,China’s foreign direct investment increased significantly, but compared with the use of foreign direct investment, china’s foreign direct investment is still small.Until2010,China’s foreign direct investment stocks accounted for only1.6%of the global stock,ranked only17in the world. Although China’s foreign direct investment stock is small,in recent years,it developed extraordinarily rapid.In2010, china has become the world’s fifth-largest foreign direct investor.So it is of great significance to analyze the stage of development and mode of development of china’s foreign direct investment.In this paper,we use the normative and empirical research methods to analyze the stage of development and mode of development of china’s foreign direct investment to provide appropriate policy recommendations to promote the development of china’s foreign direct investment. This article is divided into six parts. The first part is the Introduction. The second part is the relative theory and literature to sort out the theory and literature on foreign direct investment so as to lay a solid theoretical foundation for this article. The third part analyzes the current situation of china’s foreign direct investment to have clear grasp of the course and status of development as well as the characteristics.Also this part analyzes the corporate structure, regional structure and industry structure of china’s foreign direct investment detailly. The fourth part.through theoretical and empirical analysis to analyzes the main stages of the development of china’s foreign direct investment.The result shows that China’s foreign direct investment is in the third stage of development of the IDP theory.The fifth part is the main focus of the article, it will study the development stage and development mode of China’s foreign direct investment.Theselected data isfrom the database of theUnitedNations, WorldBank database,IMF d atabase as well as the Commerce Department data. The time of the selected data is from1997-2008including30countries and15variables. The study results will show the differences and similarities of chinese direct investment between developed and developingcountries:(1)China’s directinvestment indevelopingcountries is toseek naturalresource a ndin developed countries is to seek strategic resources;(2)Relative to developed countries, Chinese direct investment in developing countries is weak to seek the market,but mainly to seek natural resource;(3)Chinese exports to developing countries make more direct investment in them from china;(4)China’s foreign exchange reserves has no impact on China’s direct investmenindevelopingcountries;(5)Between developinganddevelopedcountries, capital accumula tion effect and accumulation of trade effect of china’s foreign direct is similar;(6)China’s direct investment in developing countries pays more attention to the host country’s economic growth rate, but direct investments in developed countries are more concerned about the host country’s per capita income. According to the conclusions,the sixth part makes policy recommendations to China’s foreign direct investment.