The Effect Of FDI Promote East Asia Regional Economic Integration

With the development of world economics and the advance of globalization process, regional integration has become an inevitable choice for all countries to adapt the development of economics. The asian financial crisis erupted of 1997 and the subprime crisis of 2008, and most east asian countries gradually find it is a collective behavior to overcome the crisis and promote the development of economics in east asia. However, because of the difference of economics and political structures among many countries in east asia, as well as the historical and territorial issues, there has not yet been a real integrational organization in east asia.As a major factor for the promotion of economic development Foreign direct investment (FDI) is a popular topic in both domestic and foreign experts and scholars’research. However, many studies are about how FDI expanses in the process of regional integration, few expert makes a lot of research on how FDI promotes the process of regional integration. Therefore,the paper start from the basing theory of FDI, then give a systemic analysis of the impact of FDI on the level of economic,the integration of investment and trade ,and the promoting affect on the regional integrationthen promote the regional integration process, and I want these will offer theoretical basis and reference value to the economic development in the east asia.The main purpose of this study is, how the FDI will eventually influence the process of regional economic integration in east asia. Around the subject, based on the discussion of the related theory, the paper gives the qualitative and quantitative analysis of the impact of FDI on the regional economic integration in east asia. Specifically, this article mainly does the following aspects of research .First, this article discusses the definition , type and related theories of FDI, and emphasises the measure indicators of regional economic integration, including the level of economics, investment integration and trade integration. These supply an underlay for the existing condition analyses and empirical analyses of FDI.Secondly, the paper make a systematic analysis on the existing condition of the east asian FDI and regional economic integration, the trend and characteristics of east asian FDI provide conditions for the promotion of regional economic integration. In the present analysis,I discuss how FDI promotes regional economic growth, investment integration and trade integration, then preliminarily confirm the results by a series of relevant statistical indicators. Analysis results indicates that there is obvious positive correlation between FDI and regional economic integration.Finally, this paper uses thr statistical method and the time sequence model to give a positive analysis for the impact of FDI to the investment integration and trade integration. The propose of positive analysis is to provide experience support for the further theoretical analysis, and increase the power of persuasion. Then according to the preceding analysis, the paper offer some suggestions how to better use FDI to promote regional economic integration of east asia.