The Influence Of Chongqing Industrial Economy For Foreign Direct Investment

Since China reform and opening up to the outside world, Chinese economy increase quickly, which has close relative with foreign direct investment (FDI). The foreign capital affect Chongqing economy. In this paper, it make use of the data of more than 150 foreign investment industry enterprises in Chongqing in 2002 to analyse the affection of chongqing industrial economy for FDI and study the foreign capital's effect of chongqing industrial economy. The result shows that in manufacturing foreign-funded enterprises with the input of the foreign capital increased the output of the enterprises increased. That means the foreign capital accelerates the economy of the foreign-funded enterprises and the economy of Chongqing industry. But the quality and the quality of Chongqing's foreign capital is low. The quality of using the foreign capital is low too. The flexible coefficient of FDI is distinctly lower than that of domestic capital. If the increase of the foreign capital and domestic capital is the same, the output of the enterprises which the domestic capital brings is much more, that is to say the "gold content" of the foreign capital is not higher than the domestic capital. The advance technology isn't introduce into to get the great effect of the improvement of the industry technology, administration and marketing while we use FDI. In a word, the influence of Chongqing manufacturing industrial economy for FDI is not prominent, the influence of Chongqing manufacturing industrial economy and the while Chongqing economy are also not prominent.The "driving power" of the foreign capital to the output of Chongqing enterprises is poor, it shows that the quality of the foreign capital is not so good as we expect. It is a question we should pay attention to that is it the real foreign capital or not. We should improve the investment environment and the advantages of the area. We should decrease and eliminate the "super civil treatment" and "non- civil treatment" and carry out the unified civil treatment to FDI. We should guide the directions of FDI and divide FDI into several types, such as encouragement, permission, restriction, etc. this will avoid excess investment and strengthen reasonable competition and develop ethical enterprises. We should make good use of the abundant natural resource and a great number of low-cost labour force and land to absorb capital and technology denseness the FDI. We should encourage the labour force denseness investment to speed up the opening up of Chongqing. We also should strengthen the administration of the foreign funded enterprises. We should choose and absorb the high quality foreign capital. At the sametime, we should keep the diversification of the foreign capital in the opening-up area and let them compete with each other. We should try our best to cultivate some multinational corporation (MNC) of ourselves. We should participate in the global competition actively. The strength of Chongqing is not strong enough, so we can use our predominate industry to cultivate one or two backbone enterprises when there are so many foreign investment groups. And the same time, it can bring along the development of the relative industry. Chongqing should use the experiences of the absorbing and using the foreign capital in East part of China for references and find out the disadvantages to adjust the foreign capital investment. We should insist on the "active, reasonable, high quality, effective" police to use the foreign capital. We should improve the level of the usage of the foreign direct investment. We should grasp the opportunity of opening up the Western part of China and adopt an active measure to strengthen the advantages of the area and to attract the foreign direct investment.