外文翻译原文THE ECONOMICS OF FOREIGN DIRECT INVESTMENT Material Source: economic Policy, 2005Author: Ari Koko The attitude towards inward foreign direct investment (FDI) has changed considerably over the last couple of decades, as most countries have liberalized their policies to attract investments from foreign multinational corporations (MNCS). On the expectation that foreign MNCS will raise employment, exports, or tax revenue, or that some of the knowledge brought by the foreign companies may spill over to the host country’s domestic firms, governments across the world have lowered various entry barriers and opened up new sectors to foreign investment. An increasing number of host governments also provide various forms of investment incentives to encourage foreign owned companies to invest in their jurisdiction. 1. These include fiscal incentives such as tax holidays and lower taxes for foreign investors, financial incentives such as grants and preferential loans to MNCS. 2. As well as measures like market preferences, infrastructure, and sometimes even monopoly rights.Many multinational enterprise itself business growth slowed, operating pressure sharply, profitability reduce, overseas expansion plans only temporarily put to one side, long view. Add the credit crunch, many potential investment or merger projects into the financing difficulties and financing costs rose trapped habitat. In addition, many private fund or national sovereign funds capital capability by different process degrees shrink, cross-border capital investment, merger willingness and ability are reduced. From the paper that foreign capital very nervous, they will be very in investing cautious.Although some FDI promotion efforts are probably motivated by temporary economic problems such as low growth rates and rising unemployment, there are also more fundamental explanations for the increasing emphasis on investment promotion in recent years. In particular, it appears that the globalization and regionalization of the international economy have made FDI incentives more interesting and important for national governments. Trade liberalization that itglobally, through GATT and WTO, or regionally, in the form of EU, NAFTA, AFTA and other regional agreements has led to increasing market integration and reduced the importance of market size as a determinant of investment location. Hence, even a small country may now compete for FDI, given that it can provide a sufficiently attractive incentive package. At the same time, national decision-makers have lost much of the instruments traditionally used to promote local competitiveness, employment, and welfare. The scope for active trade policy has diminished as a result of successful trade liberalization, and the internationalization of capital markets has limited the possibilities to use exchange rate policy as a tool to influence relative competitiveness. Most clearly, this has been seen in Europe, where the Single Market program and the EMU have shifted the responsibility for trade and exchange rate policies from national governments to the EU Commission and the European Central Bank.Some of the developments in FDI that the government desires will happen irrespective of policy．Accession to the WTO is opening up a whole host of activities previously closed for FDI, notably in services such as banking, distribution, and utilities．Further, rising wages and land prices in the East may well drive some FDI further inland when investment conditions are right．And China’s increasingly skilled labor force is likely to attract gradually more industries with higher value added to the country．In addition, removing some of the existing policy biases, such as in taxation policies, special economic zones, and marker accession will level the playing field between coastal and inland provinces and among sectors in the economy．However, China faces significant policy challenges in optimizing the use of FDI．However, the views on the importance of incentives have begun to change in recent years.In industrialized countries where financial incentives are more common, the subsidies per FDI-related job often reach tens of thousands of US dollars. The main reason for the increasing prominence of FDI incentives, as noted in the introduction, is arguably the internationalization of the world economy. Global trade liberalization has made it easier for MNCS to set up international production networks, so that a larger share of output is shipped to international customers or affiliated companies in other countries rather than sold to local customers. Incentives have also become increasingly important for national policymakers who are trying to promote local production, employment, and welfare Considering that market integration has reached further at the regional rather than global level, it is also clearthat the effects of incentives are likely to be particularly strong in the competition for FDI within regions.The common aim of these studies was to identify the various costs and benefits of FDI. Yet, the early analyses made clear that multinationals may improve locative efficiency by entering into industries with high entry barriers and reducing monopolistic distortions，and induce higher technical efficiency if the increased competitive pressure or some demonstration effect spurs local firms to more efficient use of existing resources. They also proposed that the presence may lead to increases in the rate of technology transfer and diffusion. More specifically, case studies showed that foreign MNCS may:●contribute to efficiency by breaking supply bottlenecks (but that the effectmay become●introduce new know-how by demonstrating new technologies and trainingworkers who later take employment in local firms●either break down monopolies and stimulate competition and efficiency orcreate a more monopolistic industry structure, depending on the strengthand responses of the local firms●transfer techniques for inventory and quality control and standardization totheir local suppliers and distribution channelsClearly, FDI has had many benefits for China．FDI accelerated growth by providing more investment capital, contribu ted significantly to the country’s export success with over 57 percent of exports from foreign invested firms, and generated over 120 million jobs．Foreign-invested firms generally have more value added per worker, higher labor productivity, and higher profits than domestic firms．Evidence on technology spillers is more limited, but industries with higher FDI seem to have higher productivity increases than other industries, suggesting a positive spillover．China’s Opening Up Policy: Promoting Exports and FDI.Foreign direct investment (FDI) in China was authorized in 1979, as part of the economic reform and opening up policy launched in December 1978. In order to accelerate the country economic modernization, the new policy has fostered China's participation in international trade and its access to external sources of capital and technology. FDI could be considered as the best way to achieve these different tasks: introduce foreign capital and assimilate modern technology and management skills. Since early eighties, China has followed a trade policy which bears similarities with that of other Asian countries and has combined export promotion together with relativelystrong import protection measures. Import protection is usually a major disincentive to export since it raises the cost of capital goods and of intermediate inputs required to produce goods for export. It causes domestic prices to be higher than they otherwise would be and thus makes the home market more attractive than world markets (Flatters and Harris, 1994). In order to fully neutralize this anti-export bias, China’s trade policy has insulated the exporting industries from the indirect effects of protection and has allowed exporting sectors to import goods outside the normal custom regime (duty fre e). China’s policy towards FDI has also been selective: it has included preferential treatments (tariff exemptions and fiscal reductions) in areas in which FDI has been encouraged, i.e. the export oriented sectors and the sectors targeted for import substitution policies; it has imposed severe constraints in other sectors (limited access to the domestic market). However, China’s trade policy has evolved and since the mid-nineties the level of protection has been progressively lowered. The average tariff rate was reduced from 43% in 1992 to 23% in 1996. In 1997, the average tariff on industrial products was cut to 17% and China announced that it would be reduced to 10% in 2005. The level of non-tariff barriers was still around 9% in tariff equivalent in 1996, according to World Bank’s estimation (World Bank, 1997); it has also been lowered since. Restrictions on FDI have been progressively eased. The development of Foreign Exchange Centers at the end of the eighties and currency convertibility for current account operations in 1996 have made it easier for foreign firms to balance their operations in foreign currencies. Moreover the access to the domestic market has been enlarged and new sectors gradually opened to FDI (Rosen, 1999). China’s policy towards FDI h as met with remarkable success, China becoming the second host country for FDI after the US in the nineties. Several factors have contributed to this success: the gradual liberalization of China's domestic economic system has provided a more and more favorable environment for foreign firms' activity; the high rate of economic growth. Achieved over twenty years has created a rapidly expanding domestic market which has attracted foreign investors. Lastly, China’s integration into the world economy has been accelerated by the trend towards globalization, which has meant a steady and rapid expansion of global foreign direct investment since 1992The problems of enterprise competition are talent competition, people only in the enterprise role is critical. Foreign invested enterprises foreign invested much attention to talents. The absorption, China want to use this opportunity to attract foreign investment, we must make great efforts to cultivate suffering with sexualskilled technical workers and management personnel, making foreign enterprise with localization, can save cost, in this respect the government should offer certain support and the help, except besides this, should make education and needs to perfect union, speed up the job market construction.In many countries, the empirical analysis shows that the distribution of FDI inflows domestic industrial structure is mainly affected by the following factors: one is the influence of policies encouraged and the function of the guidance of, namely, whether in certain industries executes obvious preferential policies, foreign enterprise in order to pursue the excess profit and preferential and large from entering the field investment; second, it is host has obvious comparative advantage of industry, the multinational companies may use this advantage expand itself in the international market share and share; third, the developed countries of the industrial transfer in their needs, some human costs, land due to factors such as rising costs have in international and domestic markets loss of competitiveness industry will transfer to a relatively low cost country; the fourth is host some industrial development foundation is weak, but has great market potential, by expanding the field of investment, can achieve the purpose of the country's market occupation.译文国际直接投资的经济学研究资料来源:经济政策,2005 作者：阿里科科在过去的几十年中，大多数国家对国际直接投资的态度已经大大改变了，大多数国家已制定优惠政策，以吸引外国跨国公司更多的投资。