FDI Utilization In The Inner Mongolia Autonomous Region

In the open environment, utilization of foreign investment has become the host added funds for development, an important measure to promote industrial upgrading. Most countries experience shows, the host country’s introduction of foreign investment has a certain role in promoting the economic growth, development and promotion depends mainly on the host itself, such as whether there is a perfect investment environment, favorable policy environment, the market mechanism and the human capital quality, the above conditions has become the key factor in the decision to attract foreign capital in a country and region, but also affect the actual effect of foreign direct investment to the countries and regions.Since China’s reform and opening up, always adhere to the principles and policies to encourage foreign investment, improve the investment environment, and actively introducing FDI. At present, China’s use of FDI continues to expand the scale, improve quality, the growing role in promoting the economic development of china. But because of China’s regional development is not balanced, different attractive to overseas investors, most of the FDI in China are concentrated in the southeast coastal areas, to promote the development of the southeast coastal areas plays an important role in the. Inner Mongolia is located in China’s western region, the use of foreign capital to develop the low starting point, speed is slow, but in recent years, Inner Mongolia take full advantage of their own development advantages, the actual utilization of foreign capital turnover also increased year by year.Through the analysis of the development process, the Inner Mongolia Autonomous Region use of foreign capital investment, investment, foreign capital dependence, points out that the characteristics of utilizing foreign capital in the Inner Mongolia Autonomous Region and further analyze the economic effect brought by the utilization of foreign capital in the Inner Mongolia Autonomous Region. To further determine the relationship between the two, using Granger causality and cointegration test method for empirical research, there is a positive correlation between the strong analysis results showed that the two, and there is a one-way causal relationship and economic relationship of long-term stability, the use of foreign capital has certain contribution to the economic growth of Inner Mongolia. At the same time, points out some problems existing in the Inner Mongolia Autonomous Region’s foreign investment and insufficient, finally, in view of these problems, propose effective measures.