Foreign Investment and Economic Development

Author: Wu Haihua/Piao Minggen et al
Publisher:
Publish Date: 2005-03-01
Features: For the two methods of utilizing foreign capital, namely foreign direct investment and external borrowing, if a planning approach is used to determine their respective proportion structure, the appropriate scale of foreign capital must be regarded as a constraint. Consequently, the solution of the planning will naturally be constrained by the size of the appropriate scale of foreign capital. It is evident that the appropriate scale of utilizing foreign capital, overall, determines the optimal proportion structure of foreign direct investment and external borrowing.