Study On The Strategy And Policy Orientation Of Liaoning's Fdi

On the background of China's accession to WTO and the economic globalization, China must take measures of both "bringing in" and "going out" to deal with the new situation of "domestic competition and international competition". China must take the initiative to the international market as well as actively respond to domestic competition so as to develop bigger and stronger based on the 30 years' reform. Now, the best strategy in Liaoning development is to promote FDI and transnational operations, so as to choose the best combination of resources in the whole world.In this paper, the investment government, the host country government and investment companies are considered as three elements, and they establish a three-dimensional model. With game theory, this paper first analyzes the relationship between investor government and the host government in the interests of the game. The analysis shows, only States' open-door policy can gain the maximum economic benefit. From the FDI motivation point of view, this paper analyzes that the host government and enterprises receive additional benefits compared to exports from FDI, and government subsidies have great impact on FDI enterprises. Through the above analysis, it concludes that the positive measures from the government will promote companies' further FDI. Then, this paper makes systematic analysis of the influences exerted by FDI changes to industry structure and employment structure. This paper makes empirical analysis with the data of Liaoning's FDI, the three industries proportion contributed to GDP, and the proportion of the three industries employment. It shows that FDI plays a long-term role in promoting the adjustment of industrial structure and employment structure. FDI is directly proportional to the second and third industries as well as employment proportion in the third industry. Finally, combined with the current FDI in Liaoning Province as well as the need of industrial structure and employment structure adjustment in Liaoning, this paper proposes FDI strategy and government policy measures.