Research On The Wholly Own Subsidiaries Trend Of FDI

This year is our country implemented the reform and open policy 30th anniversary. Foreign Direct Investment (FDI) in our country had rapidly expanded in these 30 years. Nowadays, it has become an important indispensable component of the national economy. At the beginning, the major pattern of investment were sino-foreign cooperative or joint venture (JV)enterprises. With the lapse of time, the sino-foreign cooperative investment decreased year by year, and joint venture pattern achieved its development peak in the early-1990s. From 1995, the increasing rate of Wholly Foreign-Owned Enterprises (WFOEs) in project and contract amount raised largely, and surpassed the JV's in 1997 and 1998. Finally the actual use of investment of WFOEs surpassed the JV's in 2000.These data have revealed the fact that multinational corporation FDI pattern have Wholly Own Subsidiaries trend.The article mainly analyzes this kind of change base on our country environmental factor changes, through established our country environmental index system, carried on the factorial analysis by using statistical software SPSS to find out two principal factors of our country environmental"the factor of opening, policy and GDP determining"and"the factor of labor element". After the analysis, the paper discovered that Wholly Own Subsidiaries trend have extremely close relations with our country environment. To obtain the influence of specific index on this tendency, this article establishes the regression equation to find out the relation base on the factor analysis's result.Base on the data analysis, this article analyzed the positive and negative influence of foreign wholly own subsidiaries trend on our country. Finally gave the corresponding countermeasure on these negative influences from the point of view of both government policy level and the enterprise level...