Utilization Of Foreign Capital Research In Western Region Of China

With the advancement of China’s reform and opening up and deepening in the degree of globalization, foreign direct investment also with unprecedented speed and scale flows in our country. Since90s last century, foreign direct investment (FDI) has increasingly become the important means of China’s utilization of foreign capital and foreign direct investment plays an important role for China’s economic development, many researchers at home and abroad are very concerned about the foreign direct investment (FDI).On the one hand, absorption of foreign capital can effectively make up for a lack of domestic capital status quo, on the other hand, it can also improve the domestic technology and management level, optimize the industrial organization, promote the development of foreign trade in our country, comprehensively promoting the international competitiveness of our country, greatly promote the comprehensive development of our country’s economy. In2010, the China’s actual use of foreign capital first break through hundred billions of pinch, reached$105.74billion, becoming the second country accepting foreign direct investment in the world. In2011, the China’s actual use of foreign capital increasing up to$116.01billion, compared with2010, increased by9.7%to an all-time high. However, foreign direct investment (FDI) flowing into China shows great imbalance in the geographical distribution, foreign direct investment mainly concentrated in the east of China, utilization of foreign capital in the western region only occupy a smaller proportion. There is a situation that is "east high and west low" in utilization of the foreign capital, because of that, the development gap between the eastern, central and western region of china is becoming bigger. In order to gain rapid growth in economy, the western region of China needs to introduce lots of foreign capital to fill the gap of fund. Therefore, How to attract more foreign investment and improve the quality of the utilization of foreign capital in the western region has become a strategic issues on which the national and government urgently needs to focus. This paper adopted the method of theory combining with empirical research, it reviews and learn the research achievements of relevant theories from domestic and foreign, and then make a deep analysis of the history and current situation of the utilization of foreign investment in the western region, to research its existing problems and the reasons of using foreign capital, and then use the SWOT model, making a comprehensive analysis of foreign direct investment in western region advantages, weaknesses, opportunities and threats; Finally, put forward the countermeasures and suggestions to improve the present situation of utilization of foreign capital and improve the quality of utilization of foreign capital in western region.This paper will be divided into five chapters:Chapter1is the introduction, elaborated the background significance of this article, purpose and research significance, domestic and foreign research dynamic, and the research content of this article, the innovation points and deficiencies.Chapter2defines the utilization of foreign capital and other related concept, on this basis, analyzes the relevant theories of foreign capital and economic growth, all of this constructed the theoretical framework for researching using foreign capital in the western region.Chapter3reviews the history of the western region using foreign direct investment, then analyses the present situation of the utilization of foreign capital in western region, to find problems existing in the utilization of foreign capital in the western region.Chapter4uses SWOT analysis method made an objective analysis for the western region foreign investment internal and external environment, and made an analysis of the utilization of foreign capital advantages (S), weaknesses (W), opportunities (O) and challenges (T), by this method, we can fully understand the factors that affect the utilization of foreign capital in the western region, it can provide strategic reference for western region to make effective attracting capital strategies.Chapter5aims at the specific problems of the use of foreign investment in the west of China, and combining with the current macroeconomic environment, and put forward policy recommendations that can optimize the utilization of foreign capital in the western region, in order to promote the western region economic rapid and healthy development.Chapter6is the conclusion and gives a specific summary of this article.