A Study Of The Influence About The Development Of Non-public Economy On China's Foreign Direct Investment

Chinese foreign direct investment flows for 123 billion dollars in2014,which in the top three for three consecutive years within the global countries(or regions).China represents the world its connotation of the foreign direct investment with a Chinese characteristic with its power and action.It demonstrates the potential of China's OFDI as a developing country and gradually embarks on a foreign direct investment in the ranks of the country.The different influences from the past studies lead to the exploration among more and more scholars.The non-public economy becomes institutionalized since the establishment of the basic economic system in the 15 th National Congress of the Chinese Communist Party.This article is based on the perspective of China is home country during foreign direct investment.It selects China foreign direct investment flows,GDP,export,the proportion of employment in individual and privateenterprises and private investment in fixed assets in the proportion of total fixed asset investment in 25 regions of China for period2003-2013.It makes empirical testing using this panel data analysis as a sample which indicates that the development of non public economy in terms of employment promotes the enterprises' foreign direct investment,on the other hand investment in fixed assets hinders the development of the foreign direct investment.Firstly this paper briefly introduces the background and significance of the topics and the key concepts involving the non-public economy and OFDI are defined in order to better quantify the empirical analysis.Then making a review of the previous theories related to foreign direct investment.As this article describes and verifies the impact factors of foreign direct investment of Chinese enterprises development,so the thesis focuses on the domestic and foreign scholars literature on OFDI factors affecting China's OFDI when introducing the relevant theories about foreign direct investment in developing countries.Then puts forward theoretical assumptions based on reviewing the development course and current situation about the non-public economy and OFDI,which verified by using the method of empirical analysis.The last part of the article analyzes the empirical results,and puts forward the corresponding policy suggestions such as transforming ideology,the construction of credit system,improving the policy supportbased on the result.