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The Trade Environment Influence to the Foreign Direct Investment Entering China: Theoretical Analysis and Empirical Study

Since our country implemented the reform and open policy in the late-1970s, to develop our country economy by using foreign capital, especially foreign direct investment (FDI), has been an very important part of export-orient economy. FDI h
Submitted On: 04-01-2010 | Views:	Article Tools:

Since our country implemented the reform and open policy in the late-1970s, to develop our country economy by using foreign capital, especially foreign direct investment (FDI), has been an very important part of export-orient economy. FDI has enhanced our country macro economy, provided the massive employment opportunity, and improved our country's technology industry structure. It also introduced a series of problems, which cannot be neglected. These years, under the global economy rapid changing background, our country's introducing foreign capital work faces to the tough situation, with both opportunities and challenges. This article is under such background, proposed the scientific concept of trade environment, and studies its influence to FDI entering China from a new aspect.First, this article summarizes the achievement, problems in the procedure of Chinese government introducing foreign capital since they implemented the reform and open policy. Then, the author introduces some theories which already formed in this field from the domestic and foreign scholars. Meanwhile the author studies the whole trade environment as well as its factor's influence to FDI entry by functions. One another, the article studies the theory and reality of domestic trade environment's impact for FDI entry by quantitative and qualitative analysis methods, obtaining a series significance conclusions based on the empirical analysis.Finally, the author proposals a series actions on improving China introducing FDI project by enhancing trade environment, which are based on exiting problems and empirical study conclusions.

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