The Study Of Foreign Direct Investment And Economic Development Of Wan Jiang City Belt

With the rapid development of economic globalization and the deepening reform and openness of China,foreign direct investment(FDI)flows into China increasingly.These investments have become more and more crucial to the social and economic development.Meanwhile,domestic and overseas scholars have contributed many studies and researches to the relationship between FDI and economic development,which mainly focused on the provincial and national level.With the growing significance of regional economy,it is of great theoretical significance to study on utilizing FDI in regional economy.Due to FDI has reached a certain scale in Chinese eastern coastal cities,in recent years,these investments have transferred from eastern coastal cities to inland cities.As the core part of the central province,Wan Jiang City Belt has been attracting the expanding scale of FDI,which has in return injected new momentum to the sustained and rapid economic development of Wan Jiang City Belt.As the first approved by national undertaking industrial transfer demonstration area,in terms of the economic development of Anhui province and the whole Central Region,the development of Wan Jiang City Belt is regarded as an important guidance and leading role.Thus,conducting the study of the utilization of foreign direct investment in Wan Jiang City Belt has positive practical significance.Therefore,this paper will study and analyze FDI and the economic development of Wan Jiang City Belt,the general contents are listed as follow:First of all,this paper analyzes and sums up related theories about influencing factors of foreign direct investment and the influence of foreign direct investment on a country’s or region’s economic development,as well as concludes related literature at home and abroad.Secondly on the basis of literature review and theoretical analysis,this paper depicts the present situation of the utilization of FDI in Wan Jiang City Belt,making concrete analysis mainly from the perspective of historical development,industrial distribution,source distribution and distribution of cities.And the problem of unreasonable structure of FDI and deficient investment environment are put forward.Thirdly,this paper conducts the empirical analysis regarding the influencing factors of the use of foreign direct investment.And it is concluded that in Wan Jiang City Belt,gross domestic product(GDP)growth,relatively low labor costs,and gradually improving infrastructure are key factors attracting foreign direct investment.Fourthly,this paper conducts the empirical analysis regarding the economic effects of utilizing FDI.According to Dunning’s theory of the Location and the availability of data,it is feasible to investigate the effect of FDI on GDP,industrial structure and trade.And it is concluded that currently FDI exerts limited economic effects on GDP growth,the transformation of industrial structure and trade.Finally,faced with problems of using FDI in the process of accelerating economic development,and combined with the empirical analysis results,it is extremely important to adopt relative suggestions in order to better utilize FDI to produce positive economic development.There are two ways:including improving the utilization rate of foreign direct investment and optimizing the structure of foreign direct investment.