The Analyses On Chinese Foreign Direct Investment In The Advantage Of Backwardness Perspective

With the development of economic globalization, international investment also develops greatly at this period. But in the past historical process, the developed countries had been the dominance in the area of international investment, and obviously became the largest beneficiaries. Most underdeveloped countries are at the disadvantageous position. In this trend of that economic globalization and the international division of labor and investment, the backward countries should change from passive to active, playing to their own advantages and actively through international investment to accelerate economic development, facing the challenges of globalization.The history of world economy is uneven development, and the backward countries catch up with the advanced countries in history. The theoretical basis is the theory of Advantage of Backwardness. Advantage of Backwardness exists in the various aspects of backward countries. This article will discuss the relationship between the Advantage of Backwardness and foreign direct investment. The author thinks that the backward countries must fully exploit its advantage in order to catch up with the developed country.By the financial crisis and other external factors, and the rapid accumulation of China's foreign exchange reserve, and appreciating in the RMB and other internal factors, Chinese economy has been a major adjustment from 2008. Studing on the Chinese Premier Wen Jiabao's Government Work Report, the government will adopt a series of strong measures to boost domestic demand, maintain economic growth and make structural adjustments. On the capital market, the use of foreign capital and foreign direct investment will develop in step.However, the theory of Advantage of Backwardness in academia is still not researched deeply. The research of FDI is even slimmer. On the basis of the Advantage of Backwardness of FDI, the article analyzes empirically that the Advantage of Backwardness improve FDI. The analysis not only provides support for the Advantage of Backwardness, but also can be applied in China's FDI, constructing the realizing mechanism of China's FDI. The analysis provides theoretical support and policy proposal to Chinese enterprises acquiring abroad.There are three innovations of this article:firstly, this article combines the theory of Advantage of Backwardness and foreign direct investment, to guide foreign investment in Chinese enterprises; secondly, the article analyzes empirically that Advantage of Backwardness improve FDI; finally, the article argues for the stage of China's Advantage of Backwardness, and analysis that which Advantages of Backwardness of China's foreign investment, and how to play these advantages.Of course, there are many inadequacies in the article: firstly, the data collected is limited, so the regression results may not be well reflected; secondly,the article didn't find the quantitative indicators for China's Advantage of Backwardness in FDI. It's difficult to prove the specific role of Advantage of Backwardness in FDI.