Abstract

Since 90s in 20th century, along with the establishment of applying the socialist market economy mechanism, China has gained considerable achievements in using foreign capitals. FDI (Foreign Direct Investment) has already become one of important source of capitals for Chinese modernization construction. China is the county attracting the most FDI in the world at present. Therefore, this paper tends to study the benefit of China using foreign capitals in perspective of FDI’s impacts on GDP according to data from 1985 to 2008, which is meaningful for China making best use of foreign capitals and driving the economic development in China.

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