The impact of FDI on China´s economy security: An empirical analysis based on factor analysis & GRNN neural network

The purpose of this paper is to build an available model and framework from GRNN neural network to evaluation the impact of FDI (Foreign Direct Investment) on China´s economy security. The method used in the study is known as factor analysis and GRNN neural network analysis. Examining 20 years´ (from 1990 to 2009) data, we set up an index evaluation system. We then analyze Chinese 20 years economy security score and ranking. We apply factor analysis model to get the main index and calculate economy security score. Based on this work, we use GRNN neural network to evaluation and forecast 2010. The result of empirical study indicates China economy security is basic safety and FDI sources, FDI in regional structure and FDI in the industrial structure have great effect on China´s economic security. The study shows a new way of China´s economy security evaluation and has great realistic significance.