The Research On The District Difference Of Foreign Direct Investment And The Influence On Our District Economy

Our national economy has kept on increasing by a high speed since reformation and opening, but it is realized by an unbalanced increasing way. There is obvious district difference in our economy in areas, particularly in the east, the central, and the western region. Due to the history and the policy, at present foreign direct investment that we can make use of is highly concentrated in the east and the distribution is very unbalance and shows obvious district difference too. The district difference exerts important influences on the formation of capital in different regions, the process of industrialization and the development of extrovert economy. At the same time it causes the unbalance development of our district economy in a certain extent. Lots of researches at present concentrate on the effects that foreign direct investment have made on economy development. However they seldom adopt the demonstrated analysis to study the influence that foreign direct investment has made on the difference of our district economy, neither do they analyze the difference in foreign direct investment districts and the reasons of the difference. Apparently, the study on the problem is not only a summary of experiences in the past 20 years but also a research on making use of foreign capital in future. Particularly after the entry into WTO, the amount of foreign direct investment may have new breakthrough, in the process of practicing the strategy of western region development and quickening the steps of development of the central and western region, the theoretic and demonstrated analysis on foreign direct investment and our district economy difference will have, important meanings in leading the orientation of foreign direct investment .For this fact, we will analyze the reasons of our district economy difference from the angle of foreign direct investment; According to the theory model we construct a double logarithm regression model, study and analyze with cross section and time series data , then draw a conclusion that the difference of foreign direct investment causes our district economy difference in a certain degree; Then we use the unbalance index number I, the degree index number of the concentration D, the standard S that reflects the absolute difference and the coefficient V that reflects relative difference to measure the difference of foreign direct investment, and draw a conclusion: the remarkable difference is not only in the eastern, the central, and the western region , but also in different provinces; Then we will analyze the reasons of the difference by way of principal component and cluster analysis ; Finally we bringup corresponding plans and suggestions.