Research On Economic Effect And Influencing Factors Of FDI In The Agriculture Of Henan

Since the reform and opening up, China’s foreign direct investment has played an important role in the economic development.And the amount has remained at the forefront of the world with the rapid increase. The development process of foreign investment in Henan Province is basically consistent with the China’s foreign direct investment, and also experienced a steady development and the rapid development stage. However, no matter the country or Henan Province, the proportion of foreign direct investment in agriculture is lower than other industries. At the same time, compared to other provinces and even the central region, the amount of FDI in agriculture is smaller. It is of great significance to study the economic effects and influencing factors of FDI in agricultural, so we can use the limited foreign capital to promote the development of agriculture industrialization and farmers’ income increase, promote the development of the agricultural economy in Henan Province.Firstly, the paper study the development of FDI in agricultural in Henan Province, combined with the review and analysis of the development of agricultural FDI in China. Secondly, under the guidance of the resources complementarities theory, two-gap theory and international production eclectic theory, the paper analyzes the economic effects of agricultural foreign direct investment in Henan Province theoretically, as well as the influencing factors. In order to clearly express the contribution of agricultural foreign direct investment to the development of agriculture industrialization and farmers’income increase in Henan, the correlation and regression analysis are used among the agricultural FDI, agricultural output and farmers’ income, In addition, the paper analyzes the influencing factors of foreign direct investment in agriculture in Henan Province with the gray system model.Through the above analysis, the paper concluded that:(1)the amount of foreign direct investment in agriculture has increased as a whole, but the proportion is still small in Henan Province;(2)the economic effects of agricultural foreign direct investment is significant, it can effectively promote the agricultural industry and farmers’ income;(3)the degree of openness of the agricultural economy has been the main factors that affect the absorbing of agriculture FDI in Henan, the scale of the industrialization of agriculture is also an important factor;(4) the impact of the investment climate for agriculture decreases, and the rich human resources and cost advantages of Henan Province is showing a huge attraction to foreign direct investment.Combined with the theoretical analysis and above conclusions, some recommendations can be showed as followings:firstly, the utilization of foreign direct investment should be optimized, and the foreign direct investment should be attracted to the agricultural sector, at the same time, we should seek truth from facts and attract investment scientifically to improve the utilization efficiency of foreign investment; Secondly, we should continue to expand the openness of the agricultural economy and release the agricultural trade and foreign investment mode; Thirdly, the investment climate for agriculture should be improved continually, including the hardware environment such as the rural and agricultural infrastructure, and the soft environment such as the construction of service system construction and the policy concessions; Finally, Henan Province must expand the personnel training scale in agriculture-related profession and actively introduce foreign talent, and increase the input of rural culture and education to improve farmers’ scientific and cultural qualities and professional skills, to enhance the level of human capital.