A Study On The Effects Of Foreign Direct Investment In Jiangsu Province

Jiangsu province has made a great achievement on utilizing foreign direct investment (FDI) since 1978. The amount and the quality of FDI continuously increase. FDI promotes economic growth, accelerates capital formation, expands social employment and human resource development, and makes a great contribution to the amplification of foreign trade scale and the optimization of foreign trade structure. "Science and technology is the first productive force". Technological progress is the impetus to economic development. Empirical analysis shows there is a causal relationship between FDI and technological progress. Institution innovation is the assurance of economic development and technological progress. FDI accelerates the transition of ownership structure, distribution system and enterprise system with the background of our market-oriented reforming. China's entry to the WTO brings both challenges and opportunities. We should actively deepen economic reform, adopt proper polices towards FDI according to WTO rules, in order to more effectively utilize FDI to promote the sustainable, rapid and healthy development of Jiangsu's economy.