Study On The Contribution Of Foreign Investment Utilization Of Agriculture To The Agriculture Economic Increase In Jiangsu Province

The effect of foreign direct investment on domestic economic growth has been a major concern of the modern theory of economy. China has been encouraging the foreign direct investments all the time. As a province with the most active economy, Jiangsu ranks among the largest foreign capital absorbers in China. Agriculture is the fore-running sector in Jiangsu opened for foreign capital, starting with credit, economic assistance and eventually to foreign direct investment, with rapid growth in sum, source and fields.The entry of foreign capital has not only made up for the agricultural investment shortage in agriculture, but also brought in advanced technology, equipment, breeds and management, promoted the structural adjustment and upgrade, the sector industrialization, the deep processing and export, transforming the traditional activities into modern, efficient and internationally oriented industry, providing farmers with increased jobs and income, and facilitated d agricultural and rural reform.While the sum of foreign capital intake is on the rise, the investment for agriculture in general remains insufficient. The agriculture in Jiangsu is confronted with numerous problems and challenges:the unattractive investment facilities for the intake of foreign capital, the lack of preferential policies for foreign capital utilization, the lack of qualified carriers for foreign investors, the lack of core technology in the knowhow importation; the lack of drive from the functional authorities to advance foreign capital utilization; and the impact from the national macroscopic regulation. These negative factors have fettered the growth of the foreign capital financed projects, and internationally oriented agriculture development. A the overseas debt crisis persisted, foreign funding has become short, there is need to explore the way for the in-depth compromise of the domestic and foreign capitals and technology, and the way for agricultural modernization with desirable quality and pace. This article, based on the theory of economy and from the macroscopic angle, deals with in-depth study of the history, status quo, achievement and challenges of foreign capital utilization in agriculture in Jiangsu, and based on the1998-2010year sequence numbers, by using Co-integration, Grainger Granger causality test, Single factor model of agricultural economic growth in the process of agriculture to use foreign capital contribution measure, build the appropriate measurement model to study the degree of influence in the area of foreign direct investment and regional agricultural production and the total value of the mutual relations between the two.This article analyzed and learnt from the experience of the use of foreign capital in agriculture at home and abroad and proposed to strengthen the effort of the utilization of foreign capital in such aspects as:better preferential policies with solid counterpart financing, better investment facilities to enhance the attractiveness for foreign investors, optimization of sector structure and management, extensive financing channel search and financing security, stronger agricultural entity for mutual benefit and win-win situation. In addition, this article proposed to prevent risk deriving from foreign investment in agricultural sector and risk of over-investment, so as to protect the land, fresh water, labor and other resources from turning into the agricultural means of other countries.