外国直接教材新投资在中国(1).pptVIP

Foreign Direct Investment in China Seth Cox 3 March 2005 Foreign Direct Investment (FDI) When is investment best defined as ‘direct?’ When investment gives rise to foreign control of domestic assets IMF- “…made to acquire a lasting interest in an enterprise where the investor has an effective voice in the mamagment of the company” Foreign Direct Investment (FDI) Investment threshold set at state level US: ‘direct’ when stake exceeds 10% China (PRC): when stake exceeds 25% Higher level to encourage larger investment? Terms: Inflow- quantity of FDI flowing into state over a given time period-dynamic measure Stock: total accumulation of investment at a given point in time- static measure FDI- What Does it Offer? Capital- long-term, risky investment Market Access- export markets Promote Export-led strategies of growth Employment Technology- transfers increase productivity Spillovers and Linkages- introduction of more competitive environment and connections to local industry boost productivity and output of entire economy What has FDI Done for China? Role in Economic Transformation-General Established new industrial branches Employment opportunities Technological transfers Technological and Managerial Skills Spillovers to domestic industry International Trade- boosted immensely Export production by Foreign-Invested Enterprises Increased from 1% in ’85 to 45% in ‘98 FIE-Led Export Growth Source: Lardy (1999) The FDI Boom in China In 2002 China was the #1 recipient of FDI worldwide Rapid FDI growth began in early 1990’s 1979-1992 FDI inflow of 20.2 billion USD 1997 stock stood at 196.8 billion USD 5 year inflow of 176.6 billion USD- accounts for 89% stock! Compound annual growth rate of FDI @ 44% from 1992-1997 GNP- FDI rose from 2% in ’92 to 5% in ’97 FDI in S. Korea early ’90’s at .02% GNP What happened in the early 1990’s- specifically 1992? The FDI Boom in China Source: China Business Review (Nov.-Dec. 2000) -Investment booms in the early 1990’s then retracts in the