Research On The Impact Of FDI On Economic Development

As Chinese political and economic center,Beijing attracts numerous overseas investors to invest capital,talent,technology and other advanced resources into the Beijing market every year.In 2017,the total amount of FDI actually used in Beijing reached 24.3 billion US dollars,an increase of 86.73% over the previous year,and accounted for 18% of the total FDI in China.In order to make better use of foreign investment and create a good business atmosphere,Beijing has built Zhongguancun Software Park,Chaoyang Cultural and Creative Industry Park,Fengtai Science and Technology Park and other industrial parks,vigorously supporting small and medium-sized enterprises’ R&D projects,improving the technological innovation ability of the region,and broadening the channels of capital sources.With its huge commercial potential,Beijing has become one of the target cities for overseas investment and plays a key role in economic development.Firstly,this paper reviews the theory of FDI,defines the relevant concepts,including the study of location selection,the study of influencing factors and the study of spillover effect,and leads to the transmission mechanism of FDI to economic growth.Secondly,this paper expounds the development process of Beijing’s utilization of foreign direct investment,which is divided into four stages.Then it analyses the current situation,mainly in four aspects: the scale of development,the distribution of industry,the distribution of sources and the way of investment.On this basis,taking Beijing’s GDP,employment,import and export trade and other related data as sample data,using unit root test,co-integration test and other econometric methods,this paper conducts an all-round empirical analysis between FDI and economic development,carries out analysis and discussion based on the empirical results,and puts forward practical countermeasures and suggestions on this basis.It is concluded that Beijing has made remarkable achievements in using FDI,but there are still some areas that can be improved.Firstly,we should improve the environment for foreign investment,make the dominant industries attractive,and enhance the competitiveness of the economy.Second,we should improve the industrial policy of foreign investment,optimize the industrial structure and make full use of capital.And then we should accelerate investment cooperation with developed countries and narrow the gap with developed countries.Finally,we should strengthen personnel training,create an innovative environment,give full play to the role of foreign investment in promoting mass entrepreneurship,and move towards the goal of high quality.