A Study On The Effect Of Foreign Direct Investment On Regional Economy

Since reform and opening-up, foreign direct investments (FDI) have swarmed into china continuously, which effectively promoted economic growth of China. However, FDI didn't evenly enter into China and the difference of the location of FDI between eastern, middle and western parts of China is too large. This unevenly location of FDI and it's fluctuate trend affected the balanceable development of regional economy profoundly. Based on the international capital flows and the economic facts of FDI flowing into China, this paper establishes an analytic framework with international economics and regional economics, then analyzes the effect of FDI on regional economic growth and in the end put forward the regional policy advice which would stimulate foreign investments inflowing into China. This paper can be divided into five chapters, each of which mainly concludes the content as below:Chapter one firstly brings forward the issue that will be studied in this paper. Then the purpose and the meaning of the research, the main analytic methods and the technical channel are expatiated.In chapter two, the theory of alluring FDI for developing country, the theory of regional economy development and the theory of the relationship between FDI and regional economy development are summarized.Chapter three describes the uneven development of regional economy utilizing many time array datum and cross section datum. Afterwards, the regional difference of the location of FDI and its affecting factor is analyzed.Chapter four chiefly studies the effect of FDI on regional economic growth from two aspects named theoretic analysis and positive analysis.Chapter five summarizes the result of the research, and then put forward some suggestions of regional policy for stimulating more foreign investments locating in middle and western parts of China.