Research On The Economic Effect Of China's Foreign Direct Investment In The Home Country

As the main body of economic globalization,countries around the world participate in international division of labor and exchanges,which greatly promotes the flow of capital,commodities,information and technology among various countries or regions,and enhances the efficiency of resource allocation worldwide.Under such an era,if the economies of the world want to achieve rapid development,they only rely on their own markets,resources,technology and funds to meet their own development needs.Therefore,transnational direct investment and international operation become inevitable choices.Since 1978,China has begun to implement reform and opening up.In this process,with the principle of equality and mutual benefit as the basic principle,it has continuously strengthened economic exchanges with various countries and regions in the world.The status of foreign trade in the Chinese economy has also been rising,and it is the fastest growing segment.One.In 2001,China joined the World Trade Organization,its economic development was rapid,its contacts with the world economy were closer,import and export increased,service trade and goods trade grew rapidly,and foreign direct investment grew significantly.China's use of foreign capital has shifted to a combination of “bringing in” and “going out”.Chinese companies rely on the “going out” strategy to rationally use domestic and foreign resources to comply with the wave of economic globalization.On this basis,China's foreign economy has made rapid progress,and China's important role in the development of the world economy has gradually manifested.Based on theoretical analysis,literature review and empirical research,this paper starts with the economic effects of China's foreign direct investment on the home country,and examines the impact of foreign direct investment on China's macro economy from the perspectives of economic growth,trade,industrial structure and employment.The article uses the statistical data of the China Foreign Direct Investment Statistics Bulletin.The relationship between the stationarity test of the time series and the regression result of the cointegration test is verified.The results show that in the long run,China's foreign direct investment is positively related to the economic growth,export trade,industrial structure and employment of the home country,and it has a certain positive effect on its development.On the basis of theoretical and empirical analysis,this paper puts forward policy recommendations,including: adhering to the “going out” strategy;continuously improving the international competitiveness and sustainable development capability of Chinese multinational corporations;actively responding to the problem of hollowing out industries;Investment plays a role in employment.