Analysis of Influencing Factors of Total Foreign Direct Investment Based on Grey Relational Analysis

Abstract

After China joined the WTO, the level of China’s opening to the outside world has gradually increased, and the total foreign direct investment has shown an upward trend. The inflow of high-quality foreign capital will help promote the growth of China's consumption, investment and total imports and exports, and stimulate economic development. At the same time, the growth of total foreign direct investment can also further promote the level of China's opening to the outside world. This paper uses the grey relational analysis method to conduct an empirical analysis on the index system composed of the influencing factors of the national total foreign direct investment. The research shows that each index in the index system has different degrees of influence on the total foreign direct investment. This article starts from the influencing factors, and formulates corresponding suggestions for the country to formulate the opening-up policy.