China is a large FDI receiving country. As one of the most developed coastal city,Zhejiang has an important economic position. But Zhejiang keeps GDP in the top ranking, while it's FDI has been backward. As facing the recent financial crisis, this paper analysis the advantages and disadvantages of FDI according to the relationship of FDI and economic development. Combining the new challenges of Zhejiang FDI in the new situation, the advantages and disadvantages in Zhejiang’s FDI environment is analyzed, the problems existing in the Zhejiang FDI and the pressure of foreign enterprises under the financial crisis is discussed. Finally,some suggestions which is helpful to improve the Zhejiang FDI are presented.
KEYWORDS:Foreign direct investment,Spillover effect,The financial crisis,FDI
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