Abstract:Taking the development of China's automobile industry as an example, this paper explores the mechanism of "the influence of attracting foreign investment on the ability of foreign investment". On the basis of expounding the opening development process of China's automobile industry, this paper takes IDP theory, international investment theory and FDI spillover effect theory as the basis, With the help of Porter's national competitive advantage diamond model, this paper analyzes the dynamic changes of China's automobile industry environment and the impact of foreign investment on the development of the industry environment in each stage. The results show that the foreign investment of China's automobile industry has a positive impact on the formation of the industry's foreign investment ability, It is mainly reflected in the following aspects: the establishment of China's auto industry by introducing foreign capital, the construction of auto industry parts system, the improvement of various production factors such as capital, technology and talents in the auto industry environment, and the overall development of the industry brought about by the competition among foreign enterprises

Authors:Chen T.T, Chen X,

International Economic Cooperation,Vol. 8, 2014(in Chinese)