Since wholly foreign-owned enterprises, Chinese-foreign joint ventures and Chinese-foreign cooperative enterprises have made a great devotion to the development of Xiamen and have been the main power and the backbone, it should be an important and practical problem( not only at present, but also in the future) how to recognize FDI's importance of the national economy and how to have a better taking advantage of FDI in Xiamen. There have been few articles about FDI in Xiamen. Because the thing in Xiamen is sensitive and different from the other city of China and relative to the situation between Taiwan and the mainland of China, even sometimes it's difficult to explain it using economic theories.
To begin with, the author summarized the theories and motives of FDI. Based on it, makes a thorough analysis of the importance of FDI to Xiamen's development. Next, the author reviews the history of FDI in Xiamen and analyses its features and combine it with the substantial to analyze why the foreign enterprises invest in Xiamen. Thus, set up a model of structure about the main factors having positive or negative influence over taking advantage of FDI in Xiamen and point out that the greatest negative one is the small market after analyzing those factors deeply. At last, on basis of the whole thesis, the author put forward a suggestion -----give up the focused strategy while a related diversification strategy involving partly unrelated one should be adopted to build competitive advantages and take advantage of more FDI in Xiamen.It will accelerate economic growth of Xiamen.
【Key Words】 Foreign Direct Investment Related Diversification Strategy
Economic growth
