大学毕业设计---analysisonfdiinmiddleeastareaandchina.doc

No of Type： Code of Unit：Level of confidentiality：StudentID： Shandong UniversityMasters thesis Topic:Analysis on FDI in Middle East Area and ChinaName of writer: KHALID HALAWANI ALSAIDSchool: School of EconomicsSpecialty : International Trade Mentor: Prof. Liu Qinling Cooperating Mentor: 8May, 2012Originality Declaration .I solemnly declare that: the Submitted paper , under the guidance of instructors, Independently through researches and studies achieved these results .except Specified contents of the referenced paper, This paper does not contain any other personal or collective published or written scientific research results. The individual and collective important contributions that were made have been mentioned clearly.I am responsible for The Liability of this paper.Students signature: Date: Paper License DeclarationI agree the school to retain or sent to the national authorities or agencies Printed and electronic version of the paper ,Allow them to check it or use it as a resource, I authorize the Shandong University to incorporate this paper in whole or in part into the database retrieval , and to save the papers and its compilation By photocopying, microprinting or any other reproduction means.(Declassification of confidential papers should comply with this requirement)Students signature: Teachers Signature:Date: CONTENTSAbstract391 Introduction411.1 Background and Significance411.2 Related Definitions431.3 Logic and Contents441.3.1 Logic441.3.2 Contents441.4 Methodology461.5 Novelties and Defects461.5.1 Novelties461.5.2 Defects472 Literature Review482.1 Relations between International Trade and FDI482.2 Causes of FDI502.3 the Host Country Effects of FDI513 FDI in the Middle East from China553.1 the Overall Status553.1.1 Region Flow553.1.2 Rising of Stock and Flow, Slightly Ups and Downs573.2 Region Distribution583.3 Industrial Distribution623.3.1 Overall Industrial Distribution of Chinese FDI623.3.2 Overall Industrial Distribution of FDI in the Middle East653.4 Summary714 FDI in China from the Middle East734.1 Flow and Trend of Change734.2 Region Distribution744.3 Industrial Distribution764.4 Summary795 Conclusions and Suggestions815.1 Conclusions815.1.1 Smaller Amount,Lower Lever815.1.2 Industrial Distribution is Uneven835.1.3 Unbalanced Development of Direct Investment between China and the Middle East835.2 Suggestions845.2.1 Effectively Improve the Investment Environment, Attract more and more High Quality Foreign Capitals845.2.2 Improve the Investment Nationality and Industrial Structure, Attract high-quality Investment865.2.3 Strengthening Cooperation with developing countries, achieving win-win87References89Acknowledgements93ABSTRACTIn recent years, countries have adopted various preferential measures to attract foreign direct investment (FDI), in order to promote the rapid development of the local economy and improvement of productivity. The Middle East Area is no exception. The Middle East attracted foreign direct investment of 43.3 billion U.S dollars in 2006, compared with an increase of 25.5% over the same period last year. Because of the global financial crisis, FDI in the region got a heavy blow. For 11 consecutive years, the Chinese investment attraction was ranking first among the developing countries, and its competitiveness in international investments made the Middle East be threatened. In this context, FDI situation in the Middle East and relations between China and the Middle East are the focus of the governments and academics.In this paper, we use the data (2003-2009) of the World Investment Report and the Bulletin of Chinas foreign investment on FDI in the region, from three aspects: the total flows of FDI from the region, regional and national flow and industrial distribution to have a comprehensive analysis of the Middle East. The results are as follows: FDI from China in this region are mainly located in Iran, Iraq, Saudi Arabia, UAE, and other seven countries. Judging from the industrial stock of FDI, by the end of 2009, FDI from China more than $100 million areas in the Middle East are Algeria, Saudi Arabia, Sudan, the United Arab Emirates, Egypt and Iran. The investment more than five hundred million dollars are Algeria, Saudi Arabia and Sudan, accumulative total stock for 20.26 billion, whose ratio is 64.3%; Judging from the investment industry, by the end of 2009, Chinese foreign direct investment in the Middle East mostly involves oil and mineral resources development, manufacture, project contracting, etc.Through the research of Chinese FDI which came from the Middle East, the paper found: Saudi Arabia, the United Arab Emirates and Iran were the main regions which had direct investments in China. In addition, the Asian countries still were the main areas, of which Kuwait, Jordan, Israel had a large proportion. African country Egypt was the main outflow kingdom of Chinese FDI.Finally, this thesis revealed the main conclusions, put forward some suggestions to improve the investment environments and policies, and then strengthen mutual cooperation.Key Words：FDI, Region, Industry, Stock, Flow.1 Introduction1.1 Background and SignificanceMiddle East countries are under the rule of imperialist colonial for a long period. So the existing economic structures inevitably have a strong colonial characteristic, and with a strong dependency. Although this situation was improved later, but still has an impact. Now, except Israel and a few other countries in the Middle East, most countries industrial bases are weak, their industrial structures and product structures are similar, the complementariness is not strong. For example, in the 1980s, the inter-Arab investment was about $ 26 billions, while its foreign investment reached $ 760 billions, far more than the annual GDP of Arab countries.However, in recent years, because of its richness in oil and gas and other natural resources and vast consumer markets in the Middle East region, it has becomed the main chasing market of the international trade and investment. The United States, Spain, Japan, Canada and other countries are the main sources of FDI in the region. As China, India and other developing countries faster economies development, these developing countries investments in the region were also increased gradually.Arab Investment and Export Credit Guarantee Corporation recently release a report pointed that: the Direct Investment Growth rate of foreign companies in the Middle East and North Africa Areas will reach 15%. The report stressed that the expected growth rate of 15% mostly comes from the announced large-scale investment projects in the next few years, particularly the energy and infrastructure construction projects. Such as, many countries have announced resumption of the past interrupted or suspended oil and real estate projects. In addition, the spending of the Gulf Cooperation Council countries in infrastructures will reach $ 245 billions in the next 10 years (2011-2020); compared with the $ 170 billions in the previous 10 years (2000-2010), the increase rate will reach 44%.On the other hand, global increasing demands for oil will increase the regional oil revenues, and thus will have a positive impact on attracing investment flows. From the foreign investments and the composition of Profits, we all see that in the field of natural energies, particularly in natural gas and mining industries, the relevant investment will continue increasing. Many multinational corporations, especially oil companies, are planning to increase the investment in the Middle East and North Africa regions.The report also believes that another important factor for the foreign investments increasing in the Middle East and North Africa is that most of the countries in the region provide a good environment for foreign companies to investment. At present, there are 16 countries put forward 38 reform programs to optimize the investment environment. A two-way investment between China and the Middle East was a little later. Although more than half of the Middle East countries have signed agreements with China to encourage and protect joint investments, provide a legal guarantee and give preferential terms for the investors from both sides, but the scale of two sides investments were still very small, mainly in fisheries, trade, construction, restaurant services and other fields. In the past two years, Chinese companies and enterprises in the Middle East countries have established many wholly-owned or joint-venture factories, mainly in the UAE, Saudi Arabia and other countries, many projects have achieved good economic sffects. The Middle East funds which China has used are mainly divided into two parts: government loans and direct investment. The Middle East countries whose investments in China developed much more rapidly are Saudi Arabia, Algeria, Sudan, United Arab Emirates, Iran, Israel and so on.Overall, from both the actual abilities of this regional foreign investments and the total amount of foreign investments which China has attracted, Chinese utilize of Middle East countries finance is out of proportion, the development of bilateral FDI between China and the Middle East countries have a good prospect.The paper will analyse deeply the industry distribution and structure of the regional FDI after 1999, especially before and after the financial crisis, and comparise the status quo of mutual investments between China and the Middle East, in order to achieve a more comprehensive understanding of the status quo and stating the reasons.1.2 Related DefinitionsThe Middle East Area is a political and geographical concept, based on the most common academic division of the mainland, the region includes the West Asia and the North Africa which amount to 21 countries, Among these 13 countries are in the West Asia: Saudi Arabia, United Arab Emirates, Kuwait, Bahrain, Qatar, Oman, Jordan, Syria, Lebanon, Iraq, Palestine, Israel, Yemen; 6 countries are in the North Africa: Egypt, Sudan, Morocco, Algeria, Tunisia, Libya, in addition also involves Iran and Turkey.The Foreign Direct Investment (FDI) are economic activities, the core of the activities is that the countrys enterprises and groups invest in other countries (territories) in cash, in kind and intangible assets, and control business managements of the enterprises out of the foreign countries (territories). The content of foreign direct investment mainly reflecting by invests in another economy to achieve its goal of lasting interest.1.3 Logics and Contents1.3.1 LogicsIntroductionRelated literature reviewsAnalysis of Chinese FDI to the Middle EastRegional Distribution of FDI in the Middle East from ChinaIndustrial Distribution of FDI in the Middle East from ChinaAnalysis of the Middle East FDI in ChinaFlows and Change Trend of FDI in China from the Middle EastRegional Distribution of FDI in China from the Middle EastConclusions and SuggestionsConclusionsSuggestionsImprove the Investment Envi -ronmentImprove the Investment Nationality and Industrial StructureStrengthening CooperationsOverall Status of FDI in the Middle East from ChinaIndustrial Distribution of FDI in China from the Middle East1.3.2 ContentsThe main Contents are as follows：Chapter 1 is the introduction of this paper. It describes the background and significance of the paper, logics and the main contents, research methods and innovations and inadequacies. Chapter 2 is literature review portion of this paper. This chapter begins by combing the relationship between FDI and international trade, then describes the FDI generated motivation and FDI effects on host country.Chapter 3 analyzes the Chinese FDI in the Middle East, firstly, it analyzes the overall situation of Chinese FDI in the Middle East and found that since 2003, the fluctuation range of Chinese FDI flows is larger; Asia is the main region which the FDI flows to. Secondly, it makes a detailed analysis of regional distribution of Chinese FDI in the region, from the industry-wide FDI stock, Algeria, Saudi Arabia, Sudan, U.A.E., Egypt and Iran are the main countries which Chinese FDI flows to; From the investment flows, Algeria, Egypt, Iran, Saudi Arabia and U.A.E. remain the main countries which Chinese FDI flows to. Finally, through the analysis on the industrial distribution of Chinese FDI in the Middle East found that, Chinese FDI in this region is mainly concentrated in the oil and gas and mineral resource development, project contracting, labor service cooperation and other fields.Chapter 4 analyses the FDI from the Middle East to China. Separately analysis from the total amount of FDI, regional and countrial flows and industrial distribution, found that, in recent years, the FDI from the Middle East to China has risen, mainly to natural resources industries. In contrast with it, although the average annual flow of the regional FDI in China is very high, but China is not the main country which its FDI has flowed to.Chapter 5, based on the analysis of chapters 3 and 4, chapter 5 reveales the main findings of this article, and gives the targeted policy suggestions on the investment climate, investment structures and close cooperation in FDI between China and the Middle East.1.4 MethodologyThe research method of the article is comparative analysis. In other words, for FDI situation between China and the Middle East, this article uses 1999-2008s data to make comparison by region, country and industry sector. Clearly find that the FDI of the Middle East mainly goes to which provinces and industries in China, and Chinese FDI to the region are mainly concentrated in the oil and gas and mineral resources developments, project contracts, labor service cooperations and other industries. This article uses 2003-2008s data from the above two parts, takes comparative analysis on the FDI between the two regions, and found that the Middle East is becoming the major region which Chinese FDI flows to, and mainly to the natural resources sectors, while China is not the major region where the FDI of the Middle East flows to.1.5 Novelties and Defects1.5.1 NoveltiesThe innovative ideas are embodied in two aspects: the article makes more comprehensive and real time comparisons of FDI between China and the Middle East. On the one hand, from the overall, it goes through the FDI on the direction of both, then in-de