| Since 1987, China's reform and opening up, the Chinese government's regional development policies through a marked shift from the eastern to the western process, from the establishment of special economic zones, to the western development strategy. From the eastern part of the process of rapid economic development and the contribution of FDI terms, in order to accelerate the development of better and faster economic development, foreign direct investment is indispensable.The western development strategy put forward, it has been ten years, various preferential policies, economic incentives, economic development of the western region has played a certain role, but in the end in the process of FDI location choice of the extent of impact, what policies or measures in effect an active role, and what little effect it? These problems will be answered at the end of this article.This first part is to introduce the article research background, practical significance, and innovation point of the framework. The second part of China's regional development policies and the use of FDI analysis of the situation, focusing on analysis of a national as well as the eastern, central and western faces of the different situations on the use of FDI. The third part is the study of existing FDI location choice of empirical research methods and models for analysis and, based on analysis of data characteristics of this selected panel data model as a positive tool. The fourth part of the empirical analysis is a core part of this article. First, the use of F statistic and Hausman statistic can be tested, in the existing panel data model selected the optimal point in time fixed effects regression model; Second, the response to the 1997 -2001 and 2001 -2005 panel data using generalized least squares (GLS) is not associated with likelihood (Period SUR) regression, respectively. Finally, two panel data regression results were statistically analyzed. 5th based in part on the previous results of the analysis to draw conclusions and policy recommendations for future regional development policy-making to provide some enlightenment. |