The Study On Causes Of The Less Of FDI In Chinese Agriculture

Since the reform and opening up, the scale of China’s foreign capital utilization expands unceasingly, which beyond that of America for the first time in2002, since then,China has become the first big country of foreign capital utilization in the world.Foreign direct investment (FDI)is the major form of foreign capital inflows. Agriculture welcomed to the foreign investment earliest and its investment scale expands unceasingly, the influx of large amount money has made positive contributions to the development of agriculture in our country, but agricultural FDI is overall less, its propotion of total FDI has been very low, hovering at around2%. To study the causes of agricultural FDI less has important significance for our further introduction, absorption and use of FDI to reach the modern agriculture development goals.This paper aims to analyze the main reasons of each subject that causing FDI in agriculture less in China, through the testing of factors restricting China’s agricultural FDI inflows and absorption. The content is as the following:The first part is an introduction. This section describes the research background, research purpose, meaning and the content and methods of the study.The second part is the theoretical foundation and agricultural FDI research status both domestic and outside. We state the theoretical basis of this article and the agricultural FDI literature review both domestic and outside. The third part is of FDI in China’s agricultural development status and constraints index system construction, this section first describes the current development of China’s agricultural FDI and its less fact, vertically and horizontally. Then build a constraints system of FDI in China’s agricultural by normative analysis and empirical testing methods. The forth part, empirical results and analysis. This section first analyze the empirical results of the constraints system on introduction of FDI in agriculture in China, then estimate the China’s agricultural FDI absorption capacity, the last, make a comprehensive analysis of FDI in industry in China less than normal from three aspects:our agriculture itself, international agricultural FDI and government services. The fifth part, the conclusion. This section presents the conclusions of China’s agricultural FDI absorption after studying the reasons of FDI less in Chinese agriculture.In the course of the study above, the conclusion is as below;(1) agricultural market demand and the scale of dependence on foreign trade, infrastructure, exchange rates, government investment, human capital constitute the main factors restricting China’s agricultural FDI inflows, Among them, the first and foremost factor is China’s agricultural production and material conditions.(2) type of labor looking for is still the main features of FDI in China’s agriculture, China’s agricultural use of FDI is still basically belong to the utilization of funds, human capital restrict the absorption of FDI in China’s agricultural use;(3) causes for FDI less in China agriculture from at least three aspects,one is China’s agricultural over-reliance on cheap labor to attract foreign investment, and the production of the investment environment is not conducive to attracting foreign investment; one is that international agricultural FDI in China is still basic in the labor force looking for type and agricultural multinational the industry security threats can not eliminated; Third, China’s government services inadequate investment in human capital in rural areas, supporting a weak sense of agricultural FDI.(4) The FDI less in agriculture in China closely related to the development of agricultural economy, accompanied by the construction of modern agriculture in China, the huge rural market size and huge agricultural economy room for growth in FDI will provide a broad space for development, the scale of China’s agricultural FDI is expected to expand, which complement the construction of modern agriculture.This study for FDI in China’s agricultural research make a useful exploration, the possible innovations are as the following:first, on the selection of a research object, select a few previous studies, analyze the shallower China’s agricultural FDI less reasons, and the reasons for the main classified Second, followed in the analysis of ideas, this article is based on the basis of previous studies, but no longer limited to a simple comparison of theory of foreign investment to find defects of Agriculture in China FDI, but make theory a guide, through empirical analysis to identify China’s agricultural constraints of FDI inflows and absorption; Third, on the research method, this paper use a combination of empirical analysis and normative analysis as complementary approaches, through the design of the FDI constraint system and estimation of FDI absorption capacity to analyze reasons of FDI less in Chinese agriculture. Finally, clarifying the concept, for the first time to borrow concept of FDI modest scale, which shows positive agricultural FDI capital accumulation effect coefficient to make an objective judgment on the scale of China’s agricultural FDI, FDI in Chinese agriculture is indeed less than normal,this concept has provided strong evidence.