The Compare Of FDI Infection Between Zhejiang And Guangdong Province

From the Chinese reform, every province uses FDI which already becomes a important manner to develop area economy, FDI make up the shortage of domestic private investment and state investment and stimulate the development of area economy. The province of Guangdong and Zhejiang lie in the Zhujiang River delta and the Yangtza River delta of china which have already absorbed the most FDI in China. But in they own delta, the scale of FDI is different from each other .the two province have their own characteristic.The anther compares a series of FDI traits in this article to illuminate the different of the inward FDI between the two provinces, which contain regional determinants, FDI Performance Index and FDI Potential Index, direct and indirect infection of inward FDI. Through the analysis ,author draws this conclusion: Guangdong behave much better in the FDI performance ,but this superiority is subdued, the main cause root in the competition from other littorals. The inward FDI in zhejiang province always under Guangdong province, but the increased velocity and scale is large. In the direct infection, Guangdong performs better than Zhejiang in the ratio of FDI/GDP and the accelerating investment of the fixed asset and accelerating the economic development, regulating the structure of industry. In the indirect infection, the author also analyzes the Industrial Total Factor Productivity. Zhejiang perform better than Guangdong in this number, it induce the technology infection to economy deeper than Guangdong。The spillover of FDI in this two provinces is different in the different period contain positive and negative spillover. The different path of economic development determines the different path of technology spillover, in the article, the author also compare the different channel of technology spillover of the two provinces. In conclusion, inward FDI in this two provinces have its own advantages and disadvantages, the Guangdong province performs better while the Zhejiang province accelerates swiftly.