FDI And Economic Increase Of Jangsu Province

In recent years,China has gain an excellent fruition that surprises the world. Meanwhile Jiangsu province,which has the best economic developing condition in China,also has a great achievement in abstracting FDI. The theory that FDI is a vital factor of economic developing is accepted by the economist,but at one time the economist deem that FDI may put more attention on the profits of foreign firm than on the social welfare of host country. Therefore the researchs to the relation of FDI and economic have worthiness and practical meaning,and that will be beneficial to using FDI in reason.For judging that FDI is favorable or deleterious,we will campare the relativity effect to the restrain effect,and judge which effect have dominancy.My article bases on the actuality of Jiangsu's FDI ,and there are three parts in the article.At first,the investment is thought that it is composed of FDI and Domestic Investment.By analysis of the connection of FDI and the increase of economic,we drew the conclusion that there is relativity effect between FDI and the increase of economic.The second,we will use the modle of Manuel R.Agosin and Ricardo Mayer(2000) for reference,and drew the conclusion that FDI have crowd-out effect on the domestic investment and restrain effect on the increase of economic.The third,we will analyse the relativity effect and restrain effect by the numbers,and at last we draw the conclusion that even if there is crowd-out effect between FDI and the domestic investment,FDI is favorable of Jiangsu province in the mass.The analyzing means of framing Investment Model is the converse analysis and the statisticat analysis.It adapts to the research to the territorial analysis of FDI.The conclusion of the article offer the reference to the judgement of the effect of FDI ,and according to that the suggestions is made to Jiangsu province about the policy of FDI.