Xinjiang Using FDI And Economic Effect Study

Along with the further development of economic globalization, internationalcapital flow in international economic activities has become the importantcharacteristics. Multinational capital flow in developed countries have foreigneconomic trade expansion of its superiority, and international market of incompletecompetition and international economic division of labor in the opportunismbehavior and accelerated the multinational company’s foreign investment, promotethe multinational company through its capital elements to make full use of the othercountries of the resource and market advantages, production and operating activitiesof globalization. At the same time, using a newly industrialized countries with weakcomparative advantage and the advantage of backwardness, actively attract foreigninvestment, the country economic development to make a difference.Since the reform and opening up, the party central committee and the statecouncil for the development of xinjiang economy to give many preferential policies,but due to lack of funds, technology and all kinds of other reasons behind, regional,resources and policy advantage not fully play their part, xinjiang and developedcoastal region between or exist certain gap, and presented the widening trend. Theshortage of capital as restricted economic development in xinjiang one of the mainfactors, the utilization of foreign direct investment can not only make up for xinjiangeconomy development in the problems of insufficient funds, increase thegovernment taxes, promote national economic development in xinjiang level rise,and through the use of foreign direct investment can also introduce the foreignadvanced technology, the introduction of advanced market management mechanism,make up the technology gap in xinjiang and management gap, and through themarket competition, promote the readjustment of the economic structure in xinjiangand the industrial structure optimization, improve the degree of industrialization inxinjiang, narrowing the gap between the eastern region to have very importantsignificance.The paper is composed by five chapters of composition, the first chapter mainlydiscusses the purpose, significance topic subject purpose, based on the use of foreigndirect investment, economic growth and foreign direct investment growth impact andother relevant theories, the author analyzes the research status from domestic andabroad, and discuss research ideas, methods and innovations. The second chapterbasically through the analysis of xinjiang investment capital scarce, enterprisefinancing and irrational industrial structure, the dominant industry did not fully playtheir part, trade structure is unreasonable, international market development,employment problems difficult enough and production technology update moredifficult, the labor productivity of all kinds of problems, demonstrates the use offoreign direct investment in xinjiang of necessity. The third chapter basically throughthe analysis of xinjiang preferential policies, resources, regional, potential market ofxinjiang the utilization of foreign direct investment of all sorts of advantages. Thefourth chapter basically analysis using foreign direct investment in xinjiang, the size of the source, the way, the use of field and location status of problems. Chapter5byusing VAR model method, this paper analyzes the xinjiang use of foreign directinvestment, exchange rate and the correlation relationship between economic growthand cointegration relationship, causal relationships and random disturbance errorimpact, and demonstrates the utilization of foreign direct investment to xinjiang inthe process of economic growth with a great role in promoting. Chapter6putforward the corresponding countermeasures.