Impact of Foreign direct investment on the development and emerging economies: The case of China

This paper describes the impact of Foreign Direct Investment (FDI) inflows on the development of the economy of emerging markets. The focus will be on the performance of Chinese locally owned firms. Some of the topics covered in this paper include theories of the firm, globalization and economic development theories. This paper will examine many aspects of China's economy, including economic and market reform policies, labor standards, capital market integration, foreign capital participation, productivity, risks and their correlated effects, and the role they play in shaping the level of economic development, and market acceptance among investors.