Describe The Role Of FDI In The New Urbanization Process Of Anhui Province

From the point of human economic and social development, urbanization is the only way, is also a path to China’s economic and social development. After the founding of new China and even in the middle of reform and opening up, China’s urbanization process once through the tortuous path due to the different strategic guiding economic and social development in different periods. Only after entering this century, Urbanization has experienced a rapid development speed. Although this type of urbanization promotes the economic development, it has some disadvantages. Some due to the absence of any industrial layout, although the real estate, high-rise buildings become more and more, eventually they all become a "ghost town", this kind of urbanization caused state-owned idle waste of resources, including land. Some seek quick success and instant benefits, eventually urbanization evolve into the "face projects","vanity projects"; Some local governments speculate in building land in the name of urbanization, just like ’drain the pond to get all the fish"; Some are blind on the project and unreasonable use of farmland to real estate development, etc. This type of urbanization is a serious threat to China’s economic and social sustainable development. Therefore, to avoid the traditional urbanization path, new urbanization strategy is bound to become the future choice of Anhui.The18th National People’s Congress adhere to the new urbanization, by cultivating a solid industrial base in order to promote the sound and rapid development of new urbanization。The Twelfth Five-Year Guideline put forward the specific requirements on new type of urbanization, to ensure that changes in the development of urbanization construction to pay equal attention to quality and quantity. The urban is an important carrier of human social activities and is also an important part of the country. Urban is growth pole of the Regional Economic Development and is also the important growth point in the next round of China’s economic growth due to its economies of scale, agglomeration effects and radiation effects, etc. In today’s wave of globalization, foreign direct investment and multinational companies increasingly important impact on developing countries, the urbanization also exhibit the characteristics of openness, is a multidimensional process and the result of social, economic and cultural role. The economic development of Anhui Province is roughly in the middle level, In the construction of new period of urbanization, better use of FDI in Anhui province to accelerate the development of new urbanization, is a rare opportunity. Like in the past we use foreign capital to promote economic development, today we use foreign capital to participate in the new urbanization. In the traditional sense FDI will bring capital, technology and management experience to promote industrial development in host country. Anhui Province should be selected use of foreign capital with the characteristics of new type of urbanization, which major should choose those who fulfill the social responsibility well, strong sense of environmental protection, green production and low carbon development of FDI. They will be a large degree of promoting the development of new urbanization in Anhui Province. In view of this, this paper studies the role of FDI in Anhui province new urbanization process.In this paper, research methods and framework is as follows. The traditional urbanization emphasis on the amount, the pursuit of the number of cities and their populations increase, this method obviously can not meet the requirements of the current new development. The new urbanization construction requires a more comprehensive and reasonable index of urban quality. This paper focuses on the role of FDI in the new process of urbanization in Anhui Province, and adopts the analytic hierarchy process (AHP), which constructs the comprehensive index of urban development in Anhui Province as to examine the basis for new urbanization construction in Anhui Province.This paper includes six parts. The first part is introduction. It mainly introduced the research background and significance; research framework and main content; scholars research literature on FDI and urbanization, finally illustrated this article possible innovation and inadequacies.The second part is basic theory about urbanization and FDI. This part first explained the urbanization and FDI, and then summarized the theory from two different views.Structuralism school and Radical school think that FDI have a negative effect on the urbanization, but Neoclassical School has a opposite view. International Direct Investment Theory perspective focused on FDI, especially multinational location choice of location factors affect a country’s FDI inflows, indirect impact on a country’s urbanization process. This laid a theoretical foundation for this paper.The third part detailed analyzes the current development of urbanization in Anhui Province. Based on statistic yearbook, this part summarizes the development status of Anhui Province Urbanization and FDI, including the characteristics presented by the development of urbanization in Anhui Province as well as problems.Fourth part immediately after the third part, in this part, analysis of the role of the FDI in the process of urbanization in four dimensions, which prove that the inflow of foreign capital from the total economy, the economic structure, institutional change, population migration, direct or indirect role in promoting the urbanization of a country or region, and then study the role of FDI in the new process of urbanization in Anhui Province.Based on mentioned above, the fifth part use mathematical statistical method and EVIEWS to analyses the relationship between Anhui Province urbanization and FDI. The main conclusion in this paper is FDI does have a great role in promoting the new urbanization of Anhui Province, especially adopting new measures. Granger causality analysis, confirmed that the advance of urbanization in Anhui Province to attract more foreign investment, both as cause and effect relationship.The sixth part is a summary of this article. After the empirical analysis above, this part made a number of recommendations on how to better promote the development of new urbanization and how to enhance the pulling effect of FDI during The Twelfth Five-Year Guide Line.