Fdi Impact to China Economy

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Content 1. Introduction 2. Background 3. The impact of FDI on China 4. Human Resource Management (HRM) in China 1. HRM in China before reform 2. Impact on reform of Chinese HRM 5. Conclusion

References

1. DeMeyer, Williamson, Jurgen Richter and Mar. 2005. Global Future: the next challenge for Asian Business. Singapore: John Wiley & Sons

2. Min Chen, 2005 Asian Management Systems, 2 nd Edition: Thomson, Chapter 20

3. Tony Edwards & Chris Rees, (2006) International Human Resource Management: Prentice Hall Chapter 5 &7

4. K.C. Fung, Hitomi Iizaka, Sarah Tong. 2002. ‘Foreign Direct Investment in China: Policy, Trend and Impact’, paper prepared for an international conference on “China’s Economy
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During the first ten years of the reform period (1978-1988), China’s GDP grew at an average rate of around 10% per annum and its share of world trade doubled during the decade of the 1980s as well. From the period of the early 1980s to late 1990s, contracted FDI inflow to China grew from about US$1.5 billion a year to more than US$40 billion a year in 1999. The rate of economic growth was even higher in the fist half of the 1990s. Since 1993, for example, the success in attracting foreign investment made China become the second largest recipient of FDI in the world and the contracted FDI increased to a peak of US$111 bn in that year. China was ranked the ninth largest trading nation, by 1999. At the same year, the development of a flourishing private sector which the private firms accounted for around 38% of services output and about 20% of industrial output. This gives the prosperity rising, especially in the costal region.

3. The impact of foreign direct investment (FDI) in China

FDI is an important element in China’s reform and economic growth, though it is not easy to say the relationship between FDI inflow and the growth empirically.It is widely believed FDI not only brings technological progress, but also having impact on industrial organization, technology transfers and the diffusion of knowledge. It influences on the market structure and competition in host economies as well. In China, there is
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