Analysis On Economic Effects Of Excess Capacity Investment To The "One Belt And One Road"

At present, China came into the overcapacity economic cycle because of the stage of our economic development and the comprehensive function of many factors, which has seriously hindered the sustainable development of China’s economic and social. Resolving the crisis of excess capacity is the current problem that we aren’t allowed to ignore, "One Belt And One Road" strategy and AIIB provided a good opportunity and financial support for China to solve excess capacity through FDI. The purpose of this paper is to study the investment of excess capacity along the "area" to resolve excess capacity problem in our country. At the same time, I try to research how it will impact on the economic development of our country. In theory, it can contribute to the research achievements of foreign direct investment in excess capacity and provide theoretical guidance and reference for foreign direct investment of the excess capacity in our country. In the real sense, the FDI of excess capacity in China can release the production factors for emerging industries and can obtain higher investment returns than domestic. Under the background of the new normal, it is conducive to both the domestic and international markets, and can further enhance the level of China’s opening up,promote bilateral economic development.The research mainly uses the method of literature review, comparative research,combining quantitative and qualitative analysis,combining the theoretical and empirical analysis, and grey correlation analysis method. According to our country’s development situation of industries with excess capacity and economic development situation of the countries along the “One Belt And One Road”, I analysis the regional selection and advantage of excess capacity investment, having done a comprehensive analysis about the feasibility of foreign investment. Empirically analyzing its impact on China’s economic development, industrial structure, employment and researching the correlation with related domestic industry. Finally, putting forward suggestions according to the results of the analysis. The innovation is that I study the foreign direct investment of the excess capacity in China under the background of "One Belt And One Road" strategy,almost no scholars specializing in the foreign investment of excess capacity before.Considering the economic effects of FDI makes the research content more comprehensive. Using the grey correlation analysis, empirically studies the association degree of FDI in excess capacity with industrial structure and the development of otherdomestic industries, making more accurate measure of the various effects of foreign investment in China’s surplus capacity.The results show that the foreign direct investment of excess capacity can transfer part of domestic capacity to some extent. It can improve the level of economic development in our country, but the impact is limited; effectively improve the industrial structure in our country, promoting the upgrading of industrial structure optimization.For the employment, it also has positive role to some extent. Its influence on the development of the relevant domestic industries is rather positive.Finally, based on the results of the study, I put forward the feasible policies and measures mainly from formulating encouragement policies, improving the cooperation level of FDI, correctly positioning investment area and reasonably choosing the way of foreign investment cooperation,reducing the negative effects caused by the FDI of excess capacity five aspects.