Research On Economic Effect Of Foreign Direct Investment In Jinan

With the development of Economic Globalization，the production factors can flowfreely and the specialization of production affects the degree of international divisionof labor．High profits prompted international capital flows have become increasinglyfrequent．Foreign Direct Investment (FDI) plays an indispensable role．Shandong is located in the eastern coast of China，makes Shandong become theforefront of China’s reform and opening up．FDI shows a process from coastal areas toinland flow in Shandong province．In1990s，Jinan was classified into the coastal openregion．The use of FDI enter a new stage of development，mainly affects capitalformation，economic growth and foreign trade．First of all，the development cycle ofFDI shows high consistency with economic growth， FDI promotes economicgrowth．Secondly，FDI influences domestic capital，produces Crowding in Effect andaccelerates the domestic capital formation．Finally，FDI stimulates the growth ofimport and export of Jinan，promotes the development of foreign trade and optimizesthe structure of foreign trade．Economic effect of FDI is influenced by many factors，not only has the reason ofFDI，but also has the impact of the host country，for example location conditions，economic development and foreign economic policy and other aspects．The economiceffect of FDI in Jinan is also determined by the two factors：Jinan is located in theinland area of Shandong and the location conditions congenitally deficient．Economicdevelopment，the scale of FDI is small，the structure is not reasonable，the source issingle and so on．These all restrict the economic effect of foreign direct investment inJinan．In addition，the utilization of FDI is weak，the other is also an important reasonfor the economic effect of FDI in Jinan． Obtaining from the elementary theory of introduction of FDI and economicdevelopment， this article analyzes the present situation of FDI in Jinan and itsstructural feature from overall scale，distribution of industrial structure，distribution ofsources，distribution of regions and investment ways by the time series data in thestatistics data of Jinan from1993to2103，on the basis of the before domestic andforeign related research．Then it establishes the corresponding econometric model andanalyzes the economic effect of FDI from capital formation，GDP and internationaltrading．Aiming at the existing problems of using FDI，improving the environment ofFDI，enhancing the attraction of FDI，improving the scale of FDI，expanding the sourceof FDI，guiding FDI flows reasonably，optimizing the structure of foreign capitalutilization．At the same time，we should take effective measures to develop thespillover effect of FDI．These will be the inevitable choice to improve the economiceffect of FDI，and promote the healthy development of the economy in Jinan．...