Economic Effects Of China's Foreign Direct Investment In The Home Country

This paper employs both quantitative and qualitative analysis method. Through the demonstration analysis on the relationship between China's foreign direct investment and domestic economy, it gets to the conclusion that foreign direct investment had played important role to push the increase of China's foreign trade and the progress of technology. This study, with its demonstration analysis, is hoped to be helpful to the government's implementation of the "going out" strategy, as well as our country's foreign direct investment.The paper is composed of five chapters.The first chapter first introduces the general situation of international foreign direct investment, arguing that the development of foreign direct investment brings about improvement of foreign trade and the transference of new technology. Then, in terms of foreign trade and technology,the paper reviews the achievements on the home country's economic effects of foreign direct investment in theoretical field and demonstration analysis.The second chapter delineates the course of China's foreign direct investment, and analyzes industry and the area distribution of direct investment. Through such introduction and analysis of the status quo, the paper concludes that China is experiencing the period of immature foreign direct investment. The third chapter proposed a demonstration analysis from the following two aspects: foreign trade and technological improvement. On one hand, it gets to the conclusion that China's foreign direct investment has mutually complementary relationship with foreign trade, based on the statistical analysis on the outflow of foreign direct investment and the volume of international trade, combined with the qualitative analysis on the trade effect to investing country. This also means that the direct investment promotes the development of foreign trade. On the other hand, through investigating the investment motivation of China's famous corporations and the influence of foreign investment on technology that had taken place in these famous enterprises, the paper concludes that China's foreign direct investment plays an important role in the process of technological improvement. Chapter Four puts forward the problems and possible solutions concerning China's foreign direct investment, so as to strengthen its role in China's economic development.Last chapter concludes findings and arguments of the paper, and points out the possible significance and expectation of the study.