FDI in China and its regional development implication

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FDI in China and its regional development implication

Introduction

In recent years, in the world, China is widely regarded as the introduction of foreign direct investment to promote economic development in one of the most successful countries. Application of neoclassical mainstream literature of economic analysis framework to conclude that foreign direct investment through capital formation, export expansion, technology transfer and promote the economic structure and institutional changes to promote China's economic development (Thirlwall, 2001, Pp.552).

Aim of this research paper is to discuss foreign direct investment on regional economic development in China's economic growth, industrial upgrading, and the impact of system changes such as in-depth research.

Significance of the Study

According to modern economic development theory analytical framework established in the specific studies taken from macro to micro, from static to dynamic, from portrait to landscape, from variable to the path of structural analysis, using theoretical analysis and empirical research combined means to explore China's regional economic development in foreign direct investment in capital formation, technological progress, human resource development, industrial restructuring, regional institutional change, the gap in regional economic development role in the process size, the role of process mechanisms, and foreign direct investment performance of the regional economic development are analyzed.

Research Questions

Describe the role of foreign direct investment in China?

What are the impacts of foreign direct investment in China ?

What is the current situation of China's economic zone?

Literature Review

Since the opening of China to international trade and investment in the late 1970s, foreign direct investment in China increased gradually during the 1980s and experienced a surge since early 1990s. Figure 1 shows the growth. By 1993, China had become the largest recipient of FDI in the developing world and, second only next to the United States globally. From 1979 to 2008, the cumulative amount of FDI flowing into China had reached US$852.6 billion. The source, mode of entry, and type of FDI in China has been changing over the years (Aitken, 1999, pp.605).

As regional differences in factor endowments, leading to foreign direct investment in the role of regional economic development are not the same. This has made efforts in the following areas and exploration: first, in a country's foreign direct investment and regional economic development, relations, from regional level to the regional industry level, from the elements to the structure of ideas, combined with the theoretical analysis and empirical research (Görg, 2001, pp. 723). These multilevel, features a wide range of research in the discipline of research ideas and research methods is very creative. As the area is a relative concept, foreign direct investment on the development of a country's economy is not the simple sum of the regional impact, and any country there are regional disparities, especially for countries with large regional disparities, the study of foreign direct investment the impact of the different regions, analysis of its causes, than study the overall impact on a country more meaningful (Findlay, 2008, pp.1).

Second, this total integrated use of analytical methods and structural analysis methods, using time series and cross-sectional ...