Quality Of Foreign Direct Investment And China's Economic Growth

Since the reform and opening up, China's investment policy has had great success. FDI enhanced our comprehensive national strength and improved China's international status .FDI has Profound influence on China's economic and social development . Our initial goal is to solve the problems of insufficient funds in China by introducing FDI. But at present, there are a lot of foreign exchange reserves and bank savings, our purpose and policy to attract investment funds also should be changed. In recent years, with multinational enterprise scale unceasingly expands, in our country, some industries exist foreign monopoly and technological monopoly. Now with fast economic growth, but the technology is relatively backward, industrial structure should be adjusted and regional economic development is not balanced, our country how to improve the quality of FDI became a focal point.The role of FDI on host country's economic growth doesn't have Coinciding conclusion. In recent years, many studies show that there are many factors which can affect the effect of FDI on economic growth.But these researches are mostly from the Angle of the host itself to explore absorptive capacity of the host country and they ignore the characteristics of FDI.This article is from a new viewpoint to discuss the influnce of characteristics of FDI on economic growth in China,and provide suggestions for our country's policy.Based on Romer's model ,we introduce the FDI characteristic to model and the analysis result shows that FDI characteristic can influnce economic growth . we selected wholly foreign-owned enterprises to export proportion, foreign direct investment in manufacturing investment proportion, foreign direct investment scale of investment and foreign direct investment technical content as foreign characteristic variables. We Use the panel data from 1999 to 2008 to analysis the effect of FDI feature and FDI quantity on economic growth.Empirical results show that:1,Foreign direct investment amount can promote economic growth;2,FDI characteristic variables can affect host country's economic growth. The bigger FDI of single investment scale is ,the greater effect it have .And both does not exist interaction ;3,FDI in manufacturing investment proportion has a positive effect on economic growth, and both also does not exist interaction;4,wholly foreign-owned enterprises to export proportion of economic growth has stimulative effect, foreign direct investment amount and its does not exist interaction;5,In investment amount is more areas, FDI technology content the higher the help the economy growth, and in a small number of capital area, high technology content of FDI not necessarily conducive to economic growth, should introduce appropriate technical content of foreign capital, FDI technology content and FDI quantity significant interaction effects. Finally, according to the conclusion of investment ideas puts forward relevant policy Suggestions.