The Analysis On Foreign Direct Investment Effect On Economic Development Of Our Country

Since World War II, with the impetus of the modern science and technology revolution, the world economics has been growing fast, the tendency to economical globalization has been more and more obvious. At an unprecedented speed and on an unprecedented scale, the rapid development of foreign direct investment (FDI) has a widespread and profound influence on the development of world economics.After the policy of open and reform, the FDI began to flow into china in a large scale, in the utilization of foreign capital,utilization of FDI has become the main measure. The effect of FDI to our national economy is becoming stronger day by day and playing an important role. Absorbing and utilizing FDI has a positive effect on the development of our national economy, inducing a lot of positive results, which makes us benefit a lot from the utilization of FDI; while at the same time it also brought some problems and made some negative effect. In general, the positive effect is more than negative effect ,however, we should not neglect the negative effect.How to utilize FDI effectively and rationally and expand the positive effect of FDI in a high degree makes us get all kinds of predicted benefits from absorbing and utilizing FDI and control the negative effect of FDI to a minimum limit. All these depend on the operation and management of FDI. This article stresses on the situation of the utilization of FDI and analyzes the positive and negative effects to our national development and concludes experience, absorbs lessons, discusses strategies in order to expand the advantages and get rid of the disadvantages.It is necessary to optimize the industrial structure and expand the domain, realize the balanced development among the sectors, implement the multiplication strategy, improves the foreign investment environment vigorously.