A Research On The Effects Of FDI On Poverty Alleviation In China

Poverty is an major social problem that hinders the development of our country.In particular,it has a profound impact on China`s economic development and social stability.According to the report of the 19<sup>th</sup> National Congress of the Communist Party of China,in 2020,China will lift all the poor people out of the poverty and accomplish the arduous task of removing the hat from all the poor counties.Therefore,this year is the most critical year for China to achieve the goal of comprehensive poverty alleviation.With the deepening of globalization in China,FDI has an increasing impact on China`s economic development.At present,China has surpassed the United States to become the world`s largest FDI inflow country.Does this have an positive impact on the poverty reduction in China?If so,does it have the same effect on different regions of our country?The study of this problem has important theoretical and practical significance.This paper focuses on the impact of FDI on the poverty reduction in China.First of all,this paper expounds the background and significance of the topic,and discusses the impact mechanism of FDI based on poverty reduction in China according to the spillover effect of FDI on the comprehensive use of relevant economic theories and the summary and reference of existing research results in related fields.Then,combined with the current situation of foreign direct investment and poverty in China,the paper combs and analyzes the quantity and regional distribution.In order to test the effect of FDI on China`s poverty reduction,this paper uses econometric analysis method and model to conduct empirical research on the basis of China`s relevant data from 2003 to2018,and discusses the Econometric Relationship between the annual disposable income of the poor and the level of FDI opening up at the national and regional levels,and concludes that,on the overall level,with the development of China`s FDI,China`s FDI level is not stable without opening up,the annual disposable income of the poor in China is also increasing,that is to say,FDI plays a positive role in poverty reduction in China.At the same time,it is also found that according to the research of different regions of China,and it`s influence degree is decreasing from the east to the west.According to the results of the above theoretical research and empirical research,the paper finally puts forward some policy suggestions on poverty reduction in China.For example,the government should not only ensure to expand the actual use of foreign investment,but also consider to use some supporting policies and measures to increase the utilization efficiency of China`s FDI,formulate corresponding FDI policies foe different regions,and play the role of FDI in sustainable development positive role and increase investment in education and human capital.