Open    Access



More effective utilization of FDI by China



Author(s)

LIU Jun-qing, YU Yang, GAO Wen-han, WANG Si-you

Full-Text PDF XML     103 Views

DOI:10.17265/1537-1514/2008.08.002

Emerged from 1950’s, with the huge emergences of multinational enterprises, foreign direct investment is developing along with international trade, and both of them present two main motivations of the world economy. Used to be one of the most closed countries,Chinahas now been an indispensable part of the international economy since its economic reform in 1978. Normally big countries receive large amount of foreign direct investment, and as a huge country,Chinareceives the top amount of FDI recently. ForChina, how to attract more FDI is less important than how to utilize FDI efficiently. IfChinauses FDI more efficiently, FDI could contribute more to its economic reform and developments. However, the efficient use of FDI is not an easy task forChinawith such large volume. This paper discusses the current situation of international capital flow and FDI toChina, and then analyzes the issues concerning FDI inChinafrom several different perspectives like terms of trade, technology spillover, dual economy, domestic investment, MNEs inChina, and spatial distribution of FDI inChina, etc.. Finally, the paper gives conclusion of the situation of FDI inChinaand suggestion for the policies of efficient usage of FDI inChina.

FDI; MNEs; international trade; technology spillover; dual economy; crowding-out effect