Foreign Direct Investment In China's International Balance Of Payments Impact Study

The Balance of International Payments functions as the barometer of a country's foreign economic transactions, and an indispensable reference in a country's economic decision-making. The available literature shows that theories on international payment regulation are rich, which stress the connection of BOP adjustment and economic variables such as exchange rate, revenue and price. That research about Foreign Direct Investment have formed more than ten genres. That research about the effects of Foreign Direct Investment on the balance of international payment of the host country has developed to a certain degree since the Asian financial crisis in 1997. Most scholars in our country emphasize on the study of the effects of indirect investment on our country's balance of international payments. However, the effects of direct investment and indirect investment on a country's balance of international payments are greatly different in modes, degree and corresponding countermeasures. In recent years, the station of FDI in world economy upgrades more and more, which have become the main power to develop economy of world, the guest country and the host country, and FDI have become a important way for the host county of FDI-in to regulate BOP. While, for ten years in succession since 1990's, our country has became the one that attracts the most foreign direct investments of all the developing countries. Undoubtedly, it has great effects on BOP that our county has fetch in FDI cosmically for many years. It is reported by WORD INVESTMENT REPORT 2005 that Foreign Direct Investment in our country amounted to USD 61billion in 2004, which ranked China the third of all the countries in the world, namely, Foreign Direct Investment has great effects on our country's international payment. Based on actual condition of foreign investment in China and our international payments and with both qualitative and quantitative methods, this thesis analyzes in great detail the effects of Foreign Direct Investment on each of the accounts in the balance of international payments.This thesis consists of three parts, five chapters in all. Chapter one is the first part. After explaining some basic concepts, it briefly introduces some related literature about the effects of Foreign Direct Investment on a country's balance of...