| Agriculture plays a fundamental role in China's national economic development, and it is the premise of stable economic development. But compared to other industries, China's agricultural development is not satisfactory. With the rapid development in other industries, it did not keep up with the pace of development. In order to balance the various components of economic development, enhance the rate of development of agriculture, increase agricultural gross domestic product in the proportion of GDP, ensure national economy has a good development environment, this article from the perspective of how to absorb foreign capital to do the research for the development of China's agriculture. The introduction of FDI can be able to accumulate capital in agriculture, to import advanced technology, to improve human capital and to bring the trade creation effect, etc. Their joint action can help to promote agricultural development in China. However, foreign direct investment does not always play a positive and idealized role in agriculture. Under the influence of crowding-out effect, the substitution effect of trade, negative effects of employment and other aspects of effects, the inflow of FDI in China's agriculture may not really like the engine to start the development of agriculture, but rather look like to bring in a "virus" from outside world into the field of agriculture in our country. This "virus" will erode the benefits of agricultural development. Since FDI Is a double-edged with has advantages and disadvantages in agriculture, how to effectively use agricultural foreign investment, correctly guide it to play a positive effects and try to avoid negative effects has become a top priority.The first two chapters briefly introduce the background significance and literature review, and chapter3briefly introduced the basic situation of FDI in China's agriculture in recent years, including the amount of use of FDI, the distribution of FDI in China's agricultural areas, the use of foreign capital between China's agricultural industry and other industries, foreign investment in China's agricultural sub-sectors, foreign investment in the regional distribution of China's agriculture, etc. On the basis of earlier survey, I will further analysis the reasons for why these phenomenon cause.In terms of the empirical analysis, we use a typical data of the13provinces from2000to2009, and establish a variable pitch coefficient model to draw a conclusion. On the whole, agricultural FDI in agriculture has a significant positive effect. The eastern region not only can attract a large number of agricultural FDI, but also can generally absorb FDI's driving force. Relative to the eastern region, the Midwest's agricultural FDI itself absorbed less than normal, what's worse it is like a "malabsorption".Shandong Province Among so many provinces where FDI inflows has played the most significant and the greatest positive effect in the development of agriculture. Therefore, it is particularly suitable to establish an agricultural based economy in Shandong Province. To Create a favorable policy environment for agricultural development, other provinces whose absorption and utilization of foreign capital in agriculture are not obvious should actively follow some of the policies of such a big agricultural province of Shandong Agricultural foreign investment, and they should combine with its own advantages and disadvantages to establish a policy of using agricultural FDI in agricultural economy positively and effectively. |
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