Analysis To The Effects Of FDI Used In Chinese Electronic Department

After 1990s, the quantity of FDI in Chinese electronic department has a rapidgrowth and the effects of FDI become more and more obvious. According to theprevious studies, FDI affects economic growth, technological progress, tradedevelopment. This thesis is based on the previous studies to analysis the FDI effectson Chinese electronic department. There are there kinds of the effects: industryincrease, industry technological progress and trade development. The research findsthat FDI has two sides' effects. On the one side, FDI promotes industry increase byforward-backward linkages. On the other side, FDI's control is a threat to the safety ofthe country industry. The two sides character also lie in the other two effects. Theindustry technology is in progressing by technology transfer and technology spilloverfrom FDI, but this progress is limited by the control of core technique and by theunqualified linkage factory in China. FDI boosts industry trade quantity by processingmode, but the processing trade confined trade further development by its identity. Theresult of the research shows that FDI has two sides' effects on industry development.To make a better use of FDI, the thesis reviews the process of electronic industrydevelopment in Japan, Taiwan and South Korea. These countries uses FDI as assistantway to industry development, the governments emphasize more on the innovationability of themselves. Therefore, china should change the attitude to FDI using andthe best way to developing industry is cultivating innovation ability in homeland.