A Study On Interaction Relationship Between FDI And Host Country's Sustainable Development

From the "god-centrism" to "anthropocentrism", peoples'ability to transform and create nature has improved drastically in the light of the changing human being's view on nature. However, when peoples attempt to display their formidable power to transform the world, a series of challenging problems turn out simultaneously, such as explosive population, resource depletion, environmental damage, ecological deterioration and so forth. Nowadays, there are so many examples showing us that nature puts punishment on humans. Learning from painful experience, human beings gradually realize that the correct way to development should be "not only to meet the needs of contemporary people, but to sustain descendants' needs" (G H. Brundtland, 1987). Sustainable development has become common expectation for the contemporary and descendants.Since 1960s, the theory of sustainable development has actually attracted global attention. Meanwhile, modern mainstream theory of international direct investment has also generated. But in nearly half a century, the two theories have a rare inter-occurrence for each other. After 1980s, globalization made a far-reaching effect on every field, under which contex, FDI has made a rapid development. In such a complex and huge system as sustainable development, FDI is no wonder miniature. It is undeniable that, however, FDI is transnational corporations' packages of productive factors invested to the host country, it will affect the host country's economy, society, resources, environment and many other aspects through a variety of external effects. At the same time, the situation of sustainable development in host country is an essential factor considered for the transnational corporations'investment strategy. From 1980s to now, China has drawn massive funds from FDI, but what functions it brings for Chinese sustainable development was still unknown.Therefore, the dissertation makes a research on the interactive relationship between FDI and host country's sustainable development. It is meaningful to study it for the benefit of both the world and China's sustainable development, and their FDI development. Theoretically, this research unifies FDI and the host country sustainable development, which is conducive to enrich sustainable development theory's connotation, promote further studies on the relation between FDI and the host country, and provide a reference for other scholars' related research. In fact, the viewpoint in the dissertation is beneficial to make foreign capital policy and the sustainable development policy for China. Simultaneously, quantitative indicators are raised in countermeasure and suggestions can help improve the controllability of the relevant policies.Based on the widespread collection of data, the study pays attention to the conformity of approach usage and problem research. The research techniques used include:combinations of normative analysis and empirical research, dynamic analysis and static analysis, general analysis and special analysis, theoretical analysis and countermeasure analysis. The whole dissertation can be divided into the following parts:First, the dissertation gives the purposes, background and significances of this study, and defines the meaning of related basic concepts. Furthermore, from the view of FDI and the host country's economic growth, social development, environment development and natural resource development, the dissertation carries on the summary on FDI and the host country sustainable development interactive relation's theories.Next, the dissertation launches the theoretical analysis to FDI and the host country sustainable development's interactive relationship. It makes a more systematic analysis mainly on the host country sustainable development's internal relationship, FDI making an effect on the host country sustainable development's action relationship and the host country's sustainable development making an effect on the FDI action relationship. The dissertation proposes many propositions and gives the theoretical proof. Third, the dissertation unifies the domestic and foreign related research, designing the world and China's sustainable development evaluating indicator system. Moreover, based on the BP artificial neural networks' modular concept, it has constructed the world and China's sustainable development evaluation model. Using the BP network model trained completely, it emulates the output of the world and China's sustainable development appraisal value. According to these data, the dissertation carries on an empirical test on FDI and the host country sustainable development's causal relationship, FDI and the host country sustainable development's interactive relationship, as well as FDI and the Chinese sustainable development's interactive relationship through the establishment linear or nonlinear regression model respectively. And, it makes innovative research on the inter-role of the stage characteristics between FDI and China's sustainable development.Finally, the dissertation gives the relevant conclusion. Furthermore, based on earlier research opinion, the dissertation put forward countermeasures and proposals especially on China's FDI and sustainable development's position, FDI development strategy sustainable development strategy in different regions and the use of FDI for coordinating development of various subsystems in China's sustainable development, improving conductive mechanism between FDI and China's sustainable development.Through theoretical analysis and empirical tests, most propositions in the dissertation are verified, so some conclusions can be drawn as follows:First, FDI has bidirectional causal relations with host country and China's sustainable development; Second, the international experience studies indicated that the FDI inflow has positive function to host country's sustainable development in overall system and in social subsystem, has negative action to host country's sustainable development in economic subsystem (long-term) and in resources subsystem, in turn, the host country's sustainable development has a positive function to the FDI inflow; Third, China's experiences studies indicated that FDI has a "Inverted U-shaped" interaction relationship with China's technical overflow effect, the human capital promotion effect and the system quality promotion effect, as well as Chinese sustainable development overall system, economical subsystem and the environment subsystem, but it has a monotonous positive function to the Chinese social subsystem and resources subsystem, in turn, China's sustainable development level has a "U-shaped" interaction relation with FDI inflow; Fourth, under the above multiple non-linear and linear relations'control, FDI and sustainable development in China show a obvious phased characteristics. Therefore, through research, the dissertation can confirm that the interactive relationship not only lies in FDI and the host country, FDI and China's sustainable development, but has a specific relationship between the dimensions and operation rules.The dissertation tries to make the innovative exploration in following several aspects:First, to establish a contact between a complex and huge system (sustainable development) and a small economic variable (FDI) and use systematic analysis to disintegrate the complex and huge system-sustainable development system, which can be identified the interactive relations between FDI and sustainable development system as well as each subsystems; Second, to define FDI "kinetic energy" and "waveshape"of its transmission process, in the way which deduce to outline FDI "the kinetic energy" in the host country sustainable development system's proliferation level and the transmission direction; Third, to propose the concept of "profit space" which analyzes the composition and the effective factor of "the profit space", and listes the host country's sustainable development as a dimension of "the profit space" in explaining that host country's sustainable development making an influence on FDI inflow under other factor's influence; Fourth, to summarize FDI and China's sustainable development interactive phased characteristics, and make the function from FDI to the China's sustainable development into six stages, and put the function from China's sustainable development to FDI into two stages which is based on FDI and China's sustainable development interactive empirical result; Fifth, to design the quantitative monitoring indicator for China's FDI development strategies and the sustainable development strategies according to development stage and international position in China's FDI and sustainable development. Certainly, this dissertation also has some points to be improved:First, due to cross-sample data by a short period of time limitations, those related propositions which have not been fully validated in the study of international experience are necessary to be further worked on more detailed data in future; Second, compared with the research degree of internal relationship of host country's sustainable development, the research on the internal relationship of FDI is still insufficient. FDI as multinational corporations' main behavioral characteristics should be explored for their operation mechanism and make a symmetric research to combine it with FDI macro operational mechanism.