Research Of The Outward Foreign Direct Investment By Listed Company Of Shandong Province And Its Influence On The Economy Of Shandong Province

With the continuous development of the socialist market economy, the industry scale, capital investment and product variety of Chinese enterprises are growing rapidly in China. Since quoted Corporations have a significant advantage in raising funds, their industrial capital gradually extended overseas under the circumstances of global economy and world competition. At the same time, Chinese policy and regulation for foreign investment market has been constantly improved, which also has boosted Chinese listed companies to pour money into other countries. The foreign investment of internal listed corporations has grown an important power not only in adjusting and facilitating industrial structure and enhancing the way of resource distribution but also in Chinese reform and opening-up process.As one of the most developed provinces in China, Shandong’s per capita GDP has exceeded 4000 dollars. In recent years, since the fact of its high labor costs, short of energy resources and environmental pollution, the traditional advantages of Shandong’s enterprises have been worn off and even become a major factor of inhibiting companies’ survival and development. So, it is crucial to enhance the competition of Shandong’s quoted companies by investing overseas and taking advantages of external superiority.Up to 2013, the listed corporations in Shandong Province have invested 3.3 billion dollars overseas, which has a huge influence on Shandong’s economy by promoting local business development and employee turnover. Therefore, through taking those listed companies’foreign investment in Shandong as breakthrough, it is practically significant to research and analyze its development situation, the influence factors and the economic impact.Based on the financial data of the listing Corporations and the economic figure of Shandong Province in years, this paper analyzed the operating status and foreign investment situation of the quoted enterprises in Shandong Province and their contribution to Shandong’s economy. Considering Shandong’s economic development, consuming capability, operating cost and infrastructure, this paper also investigated the reasons of Shandong’s foreign investment and explored the effects of listed companies’ overseas investment on Shandong’s economy and rendered policy recommendations based on the conclusions of the above research. Among the analysis of general situation of Shandong’s listing corporations, the paper collated and analyzed those companies’ regional distribution, industry distribution as well as operation status.In the research of the impact of the listing Corporations on Shandong’s economy, the paper, by using qualitative and quantitative combining method, this essay emphasized the essential role that the listed companies’ overseas investment play in the development of Shandong’s economy. Meanwhile, it also paid attention to the influence of quoted corporations’ foreign investment on industry capital allocation, employment structure and people’s living quality, ect in Shandong. Finally, it put forward the corresponding policy recommendations.