The Impact Of Corruption On FDI:Based On The View Of Quality And Quantity

At present,China is one of the country that attracts the most foreign direct investment(FDI),but also a higher degree of government corruption.Based on the macro background of the actual utilization of foreign capital and the degree of government corruption in China,this paper combs the existing research results of domestic and foreign scholars on the impact of corruption on FDI flow and FDI quality,and uses the fixed effect model to analyze China's 2002-2001 Provincial panel data for regression analysis.This paper finds that corruption can increase the flow of FDI in China and reduce the quality of FDI.The main mechanism is that in the context of the macroeconomic background of the Chinese market competition mechanism,the multinational corporations have gained more business opportunities and market access by bribery to the local government,resulting in the addition of more Of the investment,to expand the scale to increase profits,so that from the macro level will find the increase in the number of foreign capital.The reason why multinational companies have to bribe local governments is a big reason because they are not able to enter the market or get high quality commercial resources under legitimate conditions of competition,so they will achieve their purpose by bribery.The consequence of this is that the threshold of FDI is diminished implicitly,and more low-quality foreign capital will enter the country through bribery or expand investment,which leads to the lower overall quality of foreign capital flowing into China.In addition,this article also found that corruption will significantly increase the number of overseas investment in Hong Kong,Macao and significantly reduce its quality,while the impact of foreign investment in Europe and the United States are not significant.This is mainly because the relative capital of Europe and the United States,Hong Kong,Macao and Taiwan enterprises to the technical level and quality to be relatively poor,and the worse the quality of the more likely to get bribe to obtain limited economic resources,resulting in low-quality foreign capital inflows,Thus reducing the overall quality of FDI.According to the research of this paper,we can improve the quality of FDI and make full use of foreign investment in promoting the upgrading of industrial structure and scientific and technological innovation in combination with the new situation of"anti-corruption and honesty" and "turning mode and adjusting structurer",This article proposed to actively improve the market economy system,severely punish government officials rent-seeking activities,on the other hand to optimize the technical level of FDI projects and source structure.