6. Conclusions and future work

Our contributions are threefold. Firstly, comparing the predicting results of the Gray-Markov model and the time series model and the original value, respectively, we can find that the fitting effect of the former (GMM) is better than the latter (TSM) and so does its scientific and practical importance. Secondly, the predicting results of GMM show that the level of foreign investment in China has been increasing by years. Thirdly, in order to further enhance Chinese international status and attract more foreign investment, the government should play a role at a macro level to reduce excessive market administrative intervention, establish a service-oriented government, and reduce the relevant approval procedures for international investment.

In the future work, the Gray-Markov model and time series model can be combined with other predicting model (e.g., support vector machine and dynamic Bayesian) to improve the accuracy. Also these models have the potential to be applied in the other areas such as finance (e.g., stocks, funds, and security), risk (e.g., financial risk and operational risk), and business (e.g., consumer price index and incomes).

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