Research On The Economic Effects Of Outward Foreign Direct Investment On The Home Country

As China's economy sustained, rapid and healthy development and accession to the WTO to further open up the market, China's opening-up policy degree will enter into a higher level.During the process of further opening up the market, the international economic pattern has also quietly changed, a number of late-emerging economies has developed rapidly, which lead to the rapid development of international direct investment all over the world. In the face of the upsurge of foreign direct investment,the theory should be preparations. What is the purpose of outward direct investment for an enterprise and the effects of outward direct investment is how.These questions are need to answer by theoretical research,and now,China's foreign direct investment and multinational enterprises are at a lower stage,to face the economic globalization, how to improve China's foreign direct investment and its economy effect,how to promote the internationalization of domestic enterprises,that is the important issue for the internationalization of China's economy.Taking Japan as an example,this paper attempts to study on the good economic effects of Japan after World War II, to explore the successful experience of Japan and then put forward some useful advice for the development of China's outward direct investment.This paper firstly define foreign direct investment and its economic effects, on thisbasis, to introduce some calssical theory to explain Japan's foreign direct investment. Secondly, to analyze a number of economic effects studied by domestic and foreign scholars, summing up the general conclusions of foreign direct investment on the home country.In order to verify the applicability of these conclusions, this article draws on research methods of the scholars at home and abroad, setting an econometric model, and select the economic development and foreign trade as the dependent variable. Use data to do regression analysis, results showed that Japan's foreign direct investment impacted on Japan's economic development and foreign trade is similar to the foreign scholars. This article concluded that, in order to increase China's foreign direct investment economic effects, we ought to take up the industry and regional-based type,resources needed type, "technology obtained" type, export market development type of foreign direct investment.