Foreign Direct Investment In Jilin Province And Its Impact On The Economic Development Research

Since the Third Plenary Session of the Party, China began implementing the open policy. So far, China’s scale of foreign capital utilization and the industry involved have been growing. According to the《World Investment Report 2015》 in 2014 China’s FDI inflows for the first time surpassed the United States and became one of the world’s most attractive countries as for investment. At present, China’s economy has entered a "new normal". The traditional mode of opening up based mainly on foreign investment is facing serious challenges. In this context, adjusting the angle of FDI in-depth discussion is of great significance for the promotion of the new open economic pattern.As a landlocked northeastern province, Jilin province, due to various reasons like geographical location, natural environment, history etc.. Comparing with other developed provinces and current areas, Jilin Province, to attract foreign direct investment, has various problems such as smaller scale, less attractiveness, investment industry imbalance and so on. With the deepening of reform and opening and the national policy guidance and assistance, in accumulated experience of economic development in Jilin Province, it is gradually realized that foreign investment can not only compensate for the funds shortage in economic development, but also can promote rapid economic growth of national economy, and the introduction of advanced science and technology, cultivation of various talents, enhancement of quality as well as industrial gathering force will provide strong support for the steady progress of Jilin Province’s economy. In 2003, the nation adjusted Northeast economic development strategy and implemented the strategy of revitalizing northeast old industrial base. Then, Jilin Province began to enter the period of rapid growth to attract and utilize foreign capital. In 2015, the foreign direct investment used in Jilin reached 21.27 billion US dollars and achieved a leap-style development, but there were still some gaps in quantity and quality. Many problems such as small-scale of foreign investment, uneven industrial distribution, lower arrival rate of funds and lower corporate quality are serious.In this paper, using both theoretical and empirical methods, with combination of qualitative analysis and quantitative analysis, based on combing the relevant theories and literature review, the course of development of foreign direct investment in Jilin Province from 1984 to the present is analyzed and summarized. The status, characteristics and problems of foreign direct investment in Jilin Province are discussed in depth from the scale structure, industry distribution, spatial pattern, source distribution and investment method. According to the analysis and research, the final development ideas and suggestions for foreign direct investment in Jilin Province are summed up. Through studying and analyzing the status, characteristics and problems of foreign direct investment in Jilin Province, we can draw the following conclusions:First, according to the actual use of foreign direct investment in Jilin, the development process of using foreign direct investment in Jilin Province is divided into five stages. That are 1984-1991 tentative initial stage, 1992-1996 stage of rapid development, 1997-2003 volatility adjustment phase, from 2004 to 2008 in the stage of rapid development since 2009, steadily improving stage.Second, the development characteristics of attracting and utilizing foreign direct investment in Jilin Province mainly present in five aspects. First, the overall size is small and the level of competitiveness is low. Second, the distribution structure of the investment industry lost balance. Secondary industry in Jilin Province has been the greatest industry to attract and utilize foreign direct investment, among which the manufacture sector accounts for the largest share, taking the absolute advantage; the tertiary industry is relatively less, mainly in the finance, real estate, renting and business services, catering, wholesale and retail sector ect., very little in education, information transmission, computer services and software industry, culture, sports and entertainment industries; first industrial’s utilization of foreign direct investment is the least. Third, the spatial pattern of investment distribution is uneven. Changchun attracts and utilizes the most foreign direct investment, followed by Jilin, Yanbian, with the trend of outward diffusion in recent years. Fourth, investment source layout is relatively concentrated. Asia is in the first place, followed by Europe and America; it’s mainly in Chinese Hong Kong, Korea, Japan, Chinese Taiwan, Singapore and a few other countries and regions in Asia; and mainly in Germany and Europe, the British Virgin Islands, the United States, the Netherlands and other countries and regions in Europe and America. Fifth, investment and joint venture are conducted in parallel.Third, this paper measures with the elasticity the degree of interdependence of foreign direct investment and economic growth, industrial structure, employment, trade and other economic variables. The results shows that the use of foreign direct investment has led to varying degrees of effect on economic growth, the industrial structure, employment, trade and state-owned enterprise reform, regional development policies, development strategies along the way are important factors affecting the degree of interdependence.