With the globalization of the world economy, the speed of the international capital is faster and faster and the scale of the international capital is more and more larger. But there is something wrong with harmony between regional economy. Since 1993...
With the globalization of the world economy, the speed of the international capital is faster and faster and the scale of the international capital is more and more larger. But there is something wrong with harmony between regional economy. Since 1993, China has been the developing country that attracted the most foreign investment, and during this process, Jiangsu Province became one of the earliest provinces cited foreign investment. In China, Jiangsu Province is a relatively developed economy area and it is the first coastland that expand extroversion economy. To some extent, Jiangsu Province has been leading the development of Chinese economy. Foreign investment not only provides the capital needed for economic development, but also provides the advanced technology and equipment , business strategy, etc.
In 1981,the first foreign-invested enterprises in Jiangsu Province, named The Sino Foreign Joint Venture Limited Company of JiangHai Wood, was established in Wuxi city, which ushered more than 30 years of foreign reference road for Jiangsu Province, and got great success. Jiangsu Province is located in China's eastern coastal areas, because of its convenient transportation and rapid economic development . Multinational companies, especially those who aim at the domestic market prefer to choose Jiangsu Province that is close to Chinese market to invest. Furthermore, with abundant resources, cheap labor and preferential policies, and some other factors. Thus, Jiangsu Province was the best choice for Multinational companies. But such foreign investment is not uniformly distributed in Jiangsu Province, it only takes Nanjing, Suzhou, Wuxi, Zhenjiang, Changzhou as the center, just distributes in the southern area of Jiangsu Province. On the contrary, the central area of Jiangsu Province that takes center of Yangzhou, Taizhou, Nantong. Lianyungang, Yancheng, Huaian, Suqian as the center of the northern Jiangsu area, in these areas, foreign investment is little. In 1996 , the GDP of the southern area of Jiangsu Province was 39.81% of whole Jiangsu Province, in the meanwhile, it was 1.05 times of the central area of Jiangsu Province and 1.66 times of the northern Jiangsu Province.
So this thesis is based on date between 1996 to 2013 to analyze the impact of foreign investment in Jiangsu Province on the regional economy.