Necessity And Empirical Analysis Of Chinese Enterprise's FDI

Undoubtedly FDI of Chinese industry has attained noticeable achievements. But it is so grey when we take it comparatively to developed countries or domestic present problems. In order to solve present and future problems, to prompt the economy have a continual and healthy future, we should do our best to strength on FDI. The focus of this paper is to analyze the necessity of FDI. To solve this well, the structure of the thesis is as follows:Chapter One is about the theoretic explanation of FDI. Today there is no theory to describe the necessity of FDI , but we can still get enlighten from the research of traditional theories of FDI and the theories of developing countries FDI which include some explanations of the necessity of FDI.Chapter Two focuses its attention on interpreting the necessity of FDI of China . First, I analyze the realities of "the narrowness " of domestic market, the deficiency of material and industry and the limitation of the present main settlement. Then, I explain that FDI is an important way to solve these problems and promote the continual-healthy development of domestic economy . From them , we can draw a conclusion that there is the necessity of FDI of China .Chapter Three is about the empirical analysis of the necessity of Chinese FDI. The existence of several kinds of factors strengthen the development of Chinese FDI from 1990 to 2002 . To some extent, these reasons are also the reasons of the development of Chinese FDI from 1979 . Specifically , they include the development of the second industry , large deposit balance of financial institution , maintaining abroad markets and the lack of domestic consumption . They can be summed up into two kinds : material and market. In a word , they testify the forgoing statement.Chapter Four aims at the FDI problems that China has to face. At present, the main problems include problem of macro - management system, problem of enterprise themselves , problem abroad and problem of talent. Each of them is relative to the future of Chinese FDI . Knowing something about the necessity of this field doesn't mean its bright future as well as knowing something about its' present problems . Only grabbing the two parts , we could believe that the field of Chinese FDI will have a beautiful future .The last is Conclusions and suggestions.