An Analysis of the State of the Utilization of Foreign Capital in Our Country in 1999

Zhang Changchun

Chinese Economy, 2000, vol. 33, issue 1, 77-92

Abstract: The general state of utilization of foreign capital in our country in 1999 is primarily determined by factors in the following three areas: First, the progress that is being made in the rebuilding of financial markets and economic reforms in those Asian countries (or regions) that are important sources of foreign capital [for our country] and that suffered severe damage in this [financial] crisis [in Asia]. Second, the degree to which the Asian financial crisis spreads [to other regions of the world] and its impact on the economy in Europe and in the United States. Third, the condition of our domestic economy and the new developments that we are making in terms of the policy of opening up to the outside world. Based on the state of affairs in 1998 and an analysis of the state of affairs in these three areas, we project that in 1999 there will be a slight increase in our country's utilization of foreign capital compared to 1998.

Date: 2000
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