Study On FDI And The Promotion Of Industrial Competitive Of Our Country

Along with the speed of economic globalization progress, international capital flow and China reforming and opening step is also at continuously speed, the foreign direct investment to China has profound influence to the society of China. A great deal of inflow of foreign capital made up the shortage of local construction funds in the early time ,brought the advanced technique and management experience, sped the adjustment step of industrial structure, strongly promoted the formation of Chinese industrial competitive .This text study on the FDI influence to Chinese industrial competitive from the qualitative analysis and quantitative analysis .At the competitive theories this text studies on the influence mechanism of FDI to Chinese industrial competitive combined with the theories model of "Porte-Dunning"."Through a research result of draw lessons from the people of the past and combined the actual circumstance that China makes use of foreign capital, this text discussed in detail the interaction mechanism of FDI and the six factor of China (namely production factor, market need, related and assistance industry, the business enterprise strategy, structure and same profession competition and opportunity and government behavior in the diamond model especially).At the quantitative analysis, this text studied on the FDI's influence to our country's economic growth, the import and export increase and the labor rate of production. Because the difference of labor rate is the direct representation of industrial competitive, this text emphasized on the analysis of FDI's influence to our country's industry labor rate while did quantitative analysis. Through the empirical study on our country's section data of different area and industry in 2005, we got the evidence that the inflow of FDI makes foreign capital share increased quota in industrial realm ,had positive effect in improving the industry labor rate of production and industrial competitive .But in the meantime because of the big technique margin between our country's enterprise and overseas-funded enterprises, foreign capital also caused the descend of rate of production although it brought local business enterprise demonstration effect. In provinces or industries which has big rate of foreign capital, this kind of influence effect become weak. When the gap between local enterprises and foreign companies is small enough, this kind of margin will promote the improving of labor rate production of whole industry or region. Therefore, our country should pay attention to cultivate the technique of Domestic capital companies and gradually reduce the technique margin between domestic capital companies and foreign capital companies, and make the domestic capital companies utmost exert their positive effect at the time of drawing on the inflow of FDI.