Research On The Impact Of The Rule Of Law Environment On China's Foreign Direct Investment

Since the reform and opening up,China's economy has been developing and its international status has been improving.With the proposal and implementation of the "One Belt And One Road" policy,China's economic and trade cooperation with other countries in the world has become increasingly close.China's ability to attract and utilize foreign direct investment has continued to improve,and there is great potential for the utilization of foreign investment.In recent years,foreign direct investment has played an important role in China's overall economic growth and industrial restructuring.Statistics show that China's utilization of foreign direct investment has the problem of regional imbalance,most of the investment is concentrated in the eastern region,less developed central and western regions are relatively few.In addition to market conditions such as infrastructure construction,openness and labor cost,institutional factors are also playing an increasingly important role in influencing the utilization of foreign direct investment,among which the legal environment is not to be neglected.In recent years,China has adhered to the rule of law in an all-round way,and the reform of its judicial system has been deepened.The state has made a series of efforts to improve the business environment and attract foreign direct investment.A draft foreign investment law was submitted for review for the first time on December 23,2018,showing that China attaches increasing importance to protecting the interests of foreign investors and foreign-invested enterprises.Therefore,it is of great practical significance to study the relationship between the legal environment and China's foreign direct investment and think about how to improve the legal environment and promote the development of China's foreign direct investment.This paper is mainly written from the following aspects:The first chapter is an introduction of the paper,the rule of law environment is one of the important factors affecting foreign direct investment,this article to the business environment of the construction of the national hot topic,research significance,found in past literature research of scholars both at home and abroad,the rule of law environment has significant positive influence on foreign direct investment,the rule of law is an important guarantee of economic development,the improvement of the rule of law will attract foreign direct investment.Scholars at home and abroad mostly consider the construction of legal system when measuring the legal environment,but the innovation of this paper is to depict the legal environment from the perspective of judicature.The second chapter is the situation of China's foreign direct investment.Since the reform and opening up,China's foreign direct investment has continued to grow,but the imbalance between the east and the west has not been improved.This paper aims to consider whether the improvement of the rule of law environment has different effects on FDI in different regions from the perspective of regional imbalance.Chapter three is the logic and test hypothesis of the influence of legal environment on FDI.The impact of legal environment on investment expectation,investment interest protection and investment efficiency will indirectly affect FDI.A sound legal system can provide good and stable expectations and is the basis for attracting foreign direct investment.Fair judicial protection can protect the interests of investors and is the motive force to attract foreign direct investment.The relationship between government and business can reduce transaction cost and improve investment efficiency,which is the guarantee to attract foreign direct investment.The fourth chapter is empirical analysis.This article selects the data of 19 provinces in2010-2016,respectively from the angles of national and regional scope of the rule of law environment and the relations between foreign direct investment in China has carried on the empirical analysis,the results showed that the rule of law across the country environment have significant positive influence on foreign direct investment,eastern,central and west to measure influence degree alone there are regional differences,conform to the hypothesis.The fifth chapter is the conclusion and policy suggestion.Based on the conclusions of the above research,the paper puts forward some policy Suggestions on promoting FDI,including strengthening the construction of local intellectual property law system,creating a fair and open political and business environment,strengthening judicial guarantee and optimizing the industrial structure of FDI.