Abstract:
This paper analyzes the dynamic relationship between host country’s adjustment in expect and unexpected foreign investment policy and FDI entry and exit decision with discrete-time mode . As uncertainty and periods increase,investors will be more cautious in decision-making,and require more risk compensation. The existence of inertial range of investment decisions leads to a different response intensity of investment changes has on foreign investment policy adjustments. And it points out that the scale of FDI in China doesn’t change with foreign investment policy adjustment at the same time. And the key measure to making best use of foreign investment policy is to keep its predictability and stability.
FANG Yi-ni.The Study on the Effect of Host Country’s Adjustment in Foreign Investment Policy upon FDI Entry and Exit Decision——Based on Discrete-time Model[J] Economic Survey, 2013,V1(3): 47-51