Economic Development And Outward Foreign Direct Investment In China

In today’s rapid integration of world economy, international direct investment inflows and outflows are important ways of a country to embed in the globalization of the world economy. For developing countries like China, attracting foreign investment can solve the problem of insufficient funds in economic development; but when the economic develop to a certain degree, they must go out, so they can get their scarce resources and technology. We can see that the level of economic development is of great significance to the development of outward foreign direct investment. Recent years, developing countries set off a wave of foreign direct investment, the importance of foreign direct investment in developing world is increasing, thus changed the pattern of global foreign investment. The reason for this phenomenon is that the countries’ economic growth and enhancement of domestic competitiveness.China as the biggest developing countries in the world today, studying the economic development and foreign direct investment of the country is of great importance of studying the foreign direct investment of developing countries. According to the statistics provided by the UNCTAD, the amount of foreign direct investment by China increased from$6.86billion in2001to$842.2billion in2012, rank the third in the world. But the outward investment by China still little compared to the average level of developing countries and the world. Meanwhile China still have some problems in locations, industry and main body. So, a further development in outward investment is a must to China.This paper have six parts, the first part mainly introduce the background, research significance, research method, innovation and deficiency. The second part mainly look back the theory of outward investment by developing countries and the relationship between economic growth and outward investment, and summarize the research on the situation of economic growth and outward investment. The third part introduce the situation of economic growth in China in the beginning, then analyze the situation of outward investment in China. The fourth part take a empirical analysis by using the data from1982to2011in our country to see which phase China in the IDP theory, and then analyze the change of industrial structure and factor endowment in our country in every phase. The fifth part take a empirical analysis in the beginning about influence factor of the outward investment by China, then using cluster method analyze the relationship between economic growth and outward investment in each province in our country. The sixth part mainly make a conclusion of the research and point out the problems exist in the outward investment in our countries and give some suggestions to deal with it.The Innovation of this paper is relate foreign direct investment and the economic development of China, using empirical analysis to show the use of some index in promoting foreign direct investment in China, and using the data of every province to prove the result. And this paper also have deficiencies, because it is very difficult to obtain the data of micro level, so this paper short of description in the micro level.