Comparative Study On The Use Of FDI Between China And India

As the world’s two largest developing country, China and India have many common orsimilar; Both neighbors, agricultural country, the most populous country in the world, and theglobal economic growth in recent years the quickest countries, the economic development ofthe two countries world attention for the. India and China have is the world FDI flow ofmainly developing countries, FDI to China, India’s economic and technological overflow,trade and other produces a different effect. Therefore, the use of FDI in print, the presentsituation of the comparison and effect, have important practical significance.Systematically analyze the FDI theory based on first and Indian FDI policy, the size andgrowth rate, industry, origin and use of FDI problems in other aspects, China and India thestatus of FDI. China to use FDI of time early in India and China to use the FDI policy is toloosen tight after, solve the shortage of funds in China at the same time more and begin to payattention to the quality of FDI, on a scale far higher than India. And India is exactly theopposite, investment policy is first after tight pine, the use of FDI growth quickly. Theindustry of China to use the FDI mainly concentrated in the manufacturing industry, India useFDI industry is mainly services, especially the IT industry. China to use the main source ofFDI is developed regions, and China to use the main sources of FDI mainly foreign Chineseregions. China and Indian use FDI in considering their own economic security, ecologicalissues, industrial structure and so there is a big difference. Conducive to economic growtheffects of FDI on the basis of comparison with the status quo, further to China and India,technology spillovers, and trade effects of a comparative analysis.In printing, the effects ofFDI in their different, FDI to China’s economic growth effect more apparent. As India’sindustry and source of FDI, the superiority of FDI to Indian technology effect moreoutstanding. And China to use the FDI mainly manufacturing industry, it also push China’sforeign trade, so FDI to China’s trade effect is very outstanding. Finally, the authorssummarize, seal the conclusion of FDI compare, and to China to use the enlightenment ofFDI.