Analysis on Utilization of Foreign Capital in Fujian

As one of the earliest open provinces, Fujian Province has made great achievements on attracting foreign capital with its advantages of popularity and geopolitics.However since the mid1990s, Fujian’s position on utilization of foreign capital had been in decline.Based on the data of Fujian Yearbook, this paper selected the appropriate economic indicators as Fujian’s economic performance indicators, and analyzed the relationship between foreign direct investment and Fujian economical and social development by using the method of dimension reduction and modeling.Meanwhile, the existing problems in utilization of foreign capital in Fujian were discussed deeply by the model in this paper, and the corresponding countermeasures were put forward.