2011年-世界发展银行全球_Reaping_Benefits_of_FDI_and_Reshaping_Shanghais_Economic_Landscape_64页_1mb

Summary of "Reaping Benefits of FDI and Reshaping Shanghai's Economic Landscape"

Core Content

This report by the World Bank analyzes the role of Foreign Direct Investment (FDI) in shaping Shanghai's economic landscape, particularly in the context of the post-financial crisis era. It highlights the importance of FDI in driving economic growth and upgrading Shanghai's industrial structure, especially through the shift of FDI towards the services sector. The report also discusses the need for Shanghai to adapt its FDI policies to align with its evolving industrial dynamics and to improve its investment climate to remain competitive.

Main Points

1. Role of FDI in Shanghai's Economic Development

• FDI has been a key driver of economic growth and structural change in Shanghai.
• The shift of FDI towards services has been particularly significant, contributing to a structural change in the city's economy.
• FDI is more important for Shanghai in terms of value chain upgrading and high-end job creation than in terms of capital finance.
• In 2008, FFEs accounted for 20% of formal jobs, 60% of industrial output, one-third of enterprise income taxes, and two-thirds of exports in Shanghai.

2. Economic Dynamics in Shanghai

• The city's economic growth has increasingly shifted from industry to services and from investment to consumption.
• Services now contribute about 60% of GDP growth, while consumption has become a leading engine of growth.
• The share of manufacturing in total output has declined, raising concerns about "hollowing out."
• However, manufacturing remains a significant contributor to Shanghai's economy, with a shift from labor-intensive to capital and knowledge-intensive industries.

3. Post-Crisis Global Economic Prospects

• Developing countries are expected to lead global growth, with an estimated 6% growth rate in 2010, 2011, and 2012.
• High-income countries are projected to grow at a slower rate, with GDP growth expected to be around 2.3%, 2.4%, and 2.7% respectively.
• The global financial crisis has led to a decline in FDI inflows to Shanghai, especially in the manufacturing sector, due to rising labor and land costs, and the withdrawal of tax incentives.

4. Shift in FDI Policy Focus

• Shanghai should shift its FDI policy focus towards knowledge and skill-intensive sectors, such as business services, R&D, and R&D-intensive manufacturing.
• The city's comparative advantages include its geographic location, port infrastructure, and integration with the Yangtze Delta region.
• To sustain its growth, Shanghai needs to adapt its policy framework to generate enabling conditions for targeted FDI sectors.

5. Investment Climate and Policy Recommendations

• A stable, favorable investment climate and a level playing field are more important than tax incentives in attracting FDI.
• Shanghai needs to improve government efficiency, increase regulatory transparency, and strengthen investor and intellectual property rights (IPR) protection.
• The report recommends enhancing urban land planning, improving the living environment, and supporting MNCs' R&D and training cooperation with local universities.

Key Information

• FDI in Shanghai: By the end of 2010, FDI in Shanghai reached $100 billion, accounting for about 10% of China's total FDI.
• Services FDI: In 2009, services accounted for over 70% of total FDI in Shanghai. The share of services FDI in China's total FDI has declined from 25% in 2003 to 12.7% in 2008.
• FDI Contributions: FFEs have made substantial contributions to Shanghai's economy, including job creation, competition enhancement, and technology transfer.
• Global Trends: The post-crisis era is marked by a global services revolution, with developing countries playing a larger role in leading world growth.
• Policy Implications: The report emphasizes the need for Shanghai to benchmark with global best practices and to focus on improving its investment environment to maintain its attractiveness to foreign investors.

Structure and Policy Options

I. Introduction

• Shanghai has a high GDP per capita, comparable to developed economies.
• The city's vision is to become a world-class financial and business hub.
• FDI has played a critical role in Shanghai's economic development, but its future success depends on adapting to new industrial dynamics.

II. Latest Development of FDI and Economic Dynamics in Shanghai

• FDI in Shanghai has increasingly shifted towards services and knowledge-intensive industries.
• Services FDI has grown significantly, contributing to a structural change in the city's economy.
• The decline in manufacturing FDI is attributed to rising costs and competition from other cities.
• The report provides detailed data on the growth of various industries and the role of FFEs in Shanghai's economy.

III. External Environment and FDI in the Post-Crisis Era

• Developing countries are expected to lead global growth in the medium term.
• The global services revolution is accelerating, with increased FDI in services and knowledge-based industries.
• Shanghai must remain competitive by improving its investment climate and focusing on high-value sectors.

Conclusion

The report concludes that Shanghai has the potential to continue its economic growth and competitiveness by capturing opportunities from the global services revolution, tailoring policies to new industrial dynamics, and improving its investment climate. The city's success will depend on its ability to adapt and create an environment that supports innovation, attracts high-value FDI, and enhances its overall competitiveness.