Research On The Impact Of The Foreign Investing In China's Forestry Industry

In today's society, sustainable development issues, ecological problems and environmentalpollution problems are of great concern of mankind, the development of the forest isparticularly important under this circumstance. The shortage of forestry funding makes the useof foreign capitals to promote the development of forestry particularly necessary, and the use offoreign capitals plays a important role in the development of China's forestry.This article is based on the theory of foreign investment. Firstly the article developed theline and the framework of article. Secondly the article introduces the current situation ofChina's forestry development and utilization of foreign investment in China's forestry industry,and focuses on the descriptive analysis of the content, pointing out problems in every stage ofdevelopment. And then based on the data from1998-2010and vector auto-regression (VAR)model, this article do research on the dynamic relationship between foreign investment and thedevelopment of forestry industry. The results show that there is a long-term dynamicequilibrium between the use of foreign capital and the development of forest industry, rationalutilization of foreign investment is the Granger reason to sustain the rapid development of theforestry industry; this article analyzes the relationship between foreign investing and forestryindustry structure based on the approach of panel data, the results show that foreign investorsplays a important role to promote the upgrade of the forestry industry; this article applies themethod of quantitative research do empirical analysis on the capital effect of the foreigninvesting, the results show that the foreign capital has obvious squeezing effect on domesticcapital; this article use the method of qualitative research do descriptive analysis on thetechnology spillover effect of foreign capital from four aspects as follow: demonstration effect,competition effect, the correlation effects and mobility effects. Finally, in order to meet theforestry need for foreign capital and use foreign capital better to increase the level of China'sforestry industry, this article proposals from a few recommendations. Constantly optimizing theuse of foreign capital of horizontal structure and vertical structure, broadening the channels offoreign investment and enrich the investment way, making the Government strengthen theguidance and support for forestry investment, and promoting the forestry industrial structureoptimization and upgrading, and Give full play to the role of forestry in coping with the globalecological deterioration of the action in the problem.