The Analysis Of ASEAN Countries Using Foreign Investment And Their Economic Development

After the end of World War Ⅱ, developing countries became more independent, and ASEAN’s rapid economic development was particularly remarkable. ASEAN’s rapid economic development is inseparable from foreign direct investment, the active use of foreign direct investment in ASEAN countries is not only come from long-term implementation of economic policy, but using foreign investment also given a great impact to ASEAN countries, that is being important driving force to promote economic development in ASEAN. The active use of foreign direct investment come from long-term economic policies, attracting foreign direct investment also attracted a lot of money to ASEAN, and also bringing foreign advanced technology and management experience to promote and upgrade the optimization of domestic industrial structure, promote economic recovery and also development of whole country. However, there are not easy to use foreign capital, the Asian financial crisis, the European financial crisis and other ASEAN countries are good example to learn that foreign capital has brought serious environmental obstacles and destruction, so it worth to learn the lessons from the crisis, the active use of foreign capital to carry out in-depth way, the rapid adjustment of economic development, to further promote the development of foreign capital utilization. In this paper is studying the various stages of foreign investment in ASEAN, analyzing the uses of positive effects and negative effects of foreign investment, studying the utilizing of foreign investment regulations, policies of relevant countries. This paper analyzes the use of foreign investment to develop in ASEAN countries in positive role and the negative impact of economic development in three main areas, the use of foreign capital for economic development of ASEAN conducted in-depth discussions and studies and how ASEAN countries attract foreign investment, for the continuous improvement.This thesis is divided into four chapters. The first chapter introduces the main topics of this thesis purpose and significance of the study, and the simple economic development status of ASEAN countries as well as foreign investment analyzes the current situation.The second chapter is focused on the history of the using foreign capital in ASEAN countries. From the initial stage, rapid development stage, from foreign investment slow decay phase until the recovery phase, and finally capital financial turmoil, stable and the adjustment phase. Each stage respectively ASEAN countries development and foreign investment in various sectors combining research, the different stages have different significance and effect, every stage are showing different status and trends, leading to the development of the ASEAN countries are not the same.The third chapter conducted a comparative analysis, the advantages and disadvantages of ASEAN Development in the use of foreign capital. The objective of the ASEAN FDI are discussed. A positive role to promote economic development in ASEAN, foreign investment is the most direct effect to improve the ASEAN countries’ economic growth; change the capital structure, optimize the industrial structure, promote and upgrade industrial system, conduct ASEAN countries to have there own science and technology, encourage ASEAN countries to have active outward foreign trade and investment, solve employment problem within ASEAN countries, promote development of per capita GDP, these are beneficial to local people, countries’s technology and quality improvement, and also economic development. The negative effects also can not be ignored, greatly attract foreign capital in some areas will have negative influence on the development of ASEAN countries. Among them, excessive attract foreign investment will easy to hinder its national economy, also threatens the security of country’s own economic, deficit balance of payments, and capital flow to the ASEAN countries adversely. And also imbalance industry structure development, and imbalance regional development This will be a certain hindrance to economic development of ASEAN countries. In last Chapter, will discuss on how to decrease the negative effects of foreign capital utilization in ASEAN countries, proposed the solution and countermeasure. Although the foreign capital utilization process has repeatedly rebuffed, but its has a tremendous role in economic development of ASEAN countries, at the same time when strengthening regional cooperation, will need active use of foreign policy. In short term, Asean countires will not significantly reduce the use of foreign capital, but will be according to their own economic conditions and make corresponding adjustments in foreign policy, using more efficiency methods of utilizing foreign capital and make its economy level increased steadily, ASEAN economic prospects overall present a prosperous scene, the rational use of foreign capital will be the main topic of national economic in the higher stage.