The Impact Of China’s Foreign Direct Investment Policy On OFDI

As the largest developing country, China’s foreign direct investment is rapidly developing. The Chinese government has preliminarily established to promote, service, security and monitoring system of foreign direct investment, especially in recent years, the Chinese government has formulated a series of policies and measures in taxation, credit, insurance and foreign exchange, to improve the foreign investment policy environment. However, some scholars believe that the management system, the legal system and the support service measures of foreign direct investment are lagging behind, hardly adapting to the actual needs of the rapid development of our country’s overseas investment. These foreign direct investment policies have whether played a catalytic role are to be tested.This paper analysis the China’s foreign trade policy development stage, believes the foreign direct investment in China has experienced the initial stage, encourage foreign investment and expand foreign investment, and Carding three stages of development of our country’s foreign direct investment policy, Using multiple regression method, select "overseas investment foreign exchange management approach","preparation and approval of foreign investment projects in the project proposal and feasibility study report on the regulations" and "foreign investment projects approved by the Interim Measures" three of China’s foreign direct investment in the process of representative the main policy as a policy variable to measure the effect of China’s foreign direct investment policy. The results showed that:Effects of different policies on FDI in our country,"Proposal and feasibility study report on the preparation and approval of foreign investment projects project provides " has a significant inhibitory effect of the growth of the country’s OFDI,"Overseas investment foreign exchange management approach" has a significant role in the promotion of China’s foreign direct investment." Approved foreign investment projects Interim Measures" has a promote role, but not significant. This shows that in the development process of China’s foreign direct investment, China has implemented the policy on foreign direct investment of foreign exchange of China’s enterprises played a catalytic role.the1992suppression of the autonomy of overseas investment, increase policy approval process showed a significant inhibitory effect, leading to this stage of China’s foreign direct investment slowdown, Introduced in2004on business overseas investment management approach, although to some extent, greatly simplifying the approval process, but has been unable to meet the needs of the present stage of large-scale foreign investment enterprises, promoting a limited role.Compared with previous studies, this paper selected specific policy variables introduced into the regression model to examine the influence of China’s policy on foreign direct investment, broaden the perspective from the empirical analysis of foreign direct investment issues in China.