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Paper Topic:

FDI in China in last 10 years

Foreign Direct Investment in China in last 10 years Language : English (U .S

Introduction

Foreign direct investment (FDI ) is a long-term investment by a foreign investor and is considered a key component of national development strategies across all countries over the globe . This type of investment boosts the economic growth of a country through its positive impact on the country 's domestic capital , productivity , and employment statistics FDI is the lifeblood of a growing economy that provides the host country benefits of increased labor standards and skills , transfer of new technology

and innovative ideas , improved infrastructure and conducive business environment . It is a leading source of external financing Countries that have stable market conditions coupled with high productivity , low costs of labor , effective government policies and adequate infrastructure facilities are considered to be the most favored destinations for foreign investment companies . Liberalization of economies has opened doors for many countries into the emerging markets of the developing nations such as China and India

The Chinese Economy

The Chinese economy is one of the fastest growing economies in the world . It has emerged from being an economy with virtually no foreign investment in the late 1970s to a country that attracts one of the largest amounts of foreign investment from investors across the globe The increasing openness of the Chinese economy to foreign direct investment has contributed immensely to its exceptional growth and development . The increase in foreign direct investment in China has contributed to higher investment , and growth in productivity , greater employment opportunities , and a dynamic export sector

China is one of the most populous countries in the world with more than 1 .3 billion people with an annual growth rate of 0 .8 . It has taken adequate measures to curb its rising population figures and this has made a positive impact on its growth rate . The population density is approximately 136 persons per square kilometer with most of the people (almost 60 percent ) living in rural areas . Life expectancy is also higher in this country than most developing nations across the globe The country also has high literacy rate of 91 percent

The Chinese economy witnessed a slow but dramatic growth over the past twenty years . It has transformed from a poor economy with relatively low per capita income to the world 's fastest growing economy . The Chinese economy has emerged as a market-oriented economy that has become a dominant figure in world trade . The country has increased its interaction with international economy that has resulted in increased foreign trade and gross national product (GNP . The Chinese economy grew at 11 .4 percent in the year 2007 . As per the FDI Confidence Index compiled by A .T . Kearney in the year 2005 , China hold the first position followed by India and United States . China is currently the world 's fourth largest economy and it has expanded by at least 10 percent annually in the last four years . Foreign direct investment in China rose by 4 .5 percent in the...

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