Empirical Analysis Of China's Foreign Direct Investment

Investment Development Cycle (IDC) is an important theory explaining the relationship between the economic status and the phase of the international direct investment of a country. It provides great guidance, especially for developing countries, in developing their international investment. This paper summarizes the achievement of two decades economic development, analyzes the traits of international direct investment of Chinese enterprises, and sets up a demonstration model to testify the adaptability of the IDC theory in China. Then it comes to the conclusion that China is still in the second phase of the whole process and its development route is in accordance with the general rules of developing countries. Deeper study provides more specific advice on the investment target area, industry, management strategy and government support about the future development.