Analysis Of The Policy Impacts On The Quality Of FDI In China

With the improvement of reform and open policy, foreign direct investment has been developed quickly, also, the scale of FDI has been expanded, and China has became to the largest one for attracting foreign investment among the developing countries. Today, FDI has been a very important part of economic and social development in China, which is promoting the process of economic globalization. Especially, in recent years, because the concern for FDI has changed from "quantity" to "quality", it’s necessary to explore how to improve the quality of FDI in ChinaAs an important regulatory way of our government to regulate and control FDI, foreign capital policy has very important affect with the quality of FDI. The paper starts from the foreign capital policies, reviewing the course of foreign capital policies and its characteristics. And then, analyzing the effects of policy factors on the scale, Structure and benefit of FDI, which helps us to construct the internal mechanism about the effects of foreign capital policies, and the quality of FDI. At the same time, this paper selects the datas for the year1985-2011to analyze the effect of the six main factors, which is including preferential policies, the level of opening, foreign export incentives, foreign import control, pollution control and equity control, for quality of FDI by the way of principal components and regression analysis. Through theoretical and empirical analysis, the article seeks to clarify that the effects of our foreign captial policies for the quality of FDI are still very obviously. The policies of the level of opening and foreign import control will produce a positive impact; Conversely, the policies of pollution control and equity control are negatively correlated with the quality of FDI; The impacts of preferential policies are weakening in recent years; The policy of foreign export incentives needs some complementary policies to have a significant effect. Finally, on the basis of theoretical and empirical analysis, this paper gives some ways and the regulatings of our foreign capital policies to improve the quality of FDI.