The Influence Research Of FDI On China's Double Surplus Of Balance Of Payments

With the growing of China's foreign direct investment (FDI) and the significant influence of China's Double Surplus of Balance of Payments, the study of relations between FDI and double surplus has theoretical and practical significance to make right foreign policy and prevent financial risks as well as coordinate the economic of internal and external.Firstly,according to the theories about FDI and Balance of Payments, this thesis introduces the motivation of FDI inflow as well as the impact ways of FDI to Balance of Payment; Then makes a brief summary of China's FDI situation and It's characteristics, analyzes the situation of China's Double Surplus of Balance of Payments and it's impact on economy; and then analyzes the nature of China's FDI and Double Surplus, finds that FDI is a part of China's domestic savings and the root cause of China's double surplus is that domestic savings is more than investment, uses ADF Test and Granger Causality Test to prove weather there is relation between FDI and current account surplus, finds there is no relationship between FDI and current account surplus, discusses the reason according to this result, analyses the potential risks of retained profits. At the same time, briefly analyzes FDI'impact on capital account surplus.This thesis uses the related data in 1991-2006 to analyze the relation between FDI and current account surplus; the data of retained profits is calculated by the data of FDI profit minus export amount of investment income.Finally,according to the analysis result about FDI and Double Surplus of Balance of Payments,this thesis proposes policy suggestions to prevent financial risks, those suggestions provide the basis for government to make related policies.