Analysis Of The Performance Of Foreign Capital Utilization In Henan Province

Foreign capital plays a huge role in rapid and sustainable growth of Henan province economy. Analysis and Study is necessary for Henan province to use foreign direct investment(FDI) effectively. The case of foreign capital utilization in Henan province are analyzed,and puts forward some suggestions for effective use of foreign direct investment.Firstly both the historical process of the use of foreign direct investment in Henan Province and the current development status of the use of foreign direct investment in Henan Province have been analyzed in this article. Then, in this article, the data of foreign direct investment in 1985-2014 is used to establish the regression models, which can be used to systematically analyze the performance of foreign direct investment in Henan Province in five facts, which includes the growth of economy, trade, industry, technology spillovers and employment. The results prove that the performance of the use of foreign direct investment in Henan Province is positive and that the influence of foreign direct investment is little different in different facts. FDI has a certain role in promoting the economic development of Henan province. FDI promotes the growth of the number of imports and exports of Henan province,however, almost has no impact on promoting the quality of imports and exports. FDI mainly invests in the manufacturing industry in the second industry, comparatively, invests few in the first industry, the third industry and the second industry in the proportion of high-tech industries. the technical level of FDI is low, so the impact on the upgrading of industrial technology in Henan province is limited. FDI has a positive impact on the employment of Henan Province, but the effect is not very obvious.In the end, to keep the sustainable economic development in Henan Province, this paper puts forward some advice on how to make better use of foreign direct investment in Henan Province. First understanding the importance of the introduction of foreign capital. Second improving the investment environment, and optimizing the investment soft and hard conditions. Third strengthening the industry oriented and adopting correct industrial policies.Fourth enhancing the technology spillover and transfer. Fifth guiding foreign direct investment employment driven effect.