| In recent years,the domestic and foreign scholars did much in-depth study on the positive effects of foreign direct investment,such as economic growth effects,technology spillover effects,employment effects.With the large-scale foreign direct investment flowing into one country(such as China),more and more attention are being paid to the negative impact of FDI to the economic development of the host country. One of them is domestic capital formation effect,which means that foreign direct investment is to increase domestic investment (Crowding-In Effect,CIE) of the host country,or suppress the domestic investment(Crowding-Out Effect,COE) of the host country.Jiangsu Province is to be researched in this article.At first,we will carry out a comprehensive description of Status quo of FDI in Jiangsu, such as the development process,the total scale,the geographical distribution,the distribution of industry and sectors,Forms of the investment.And then on the base of mature theoretical models and existing findings of FDI,we will put qualitative analysis and preliminarily estimate the crowding-in and crowding-out effect through the investment rate,savings rate,the rate of inflow of foreign capital. After the theoretical analysis we introduce an empirical model,selecting the historical data of Jiangsu from 1987 to 2007 to do regression analysis. According to the characteristics of FDI stage in Jiangsu,we will do regression analysis respectively to the stages of 1987 to 1993 and 1994 to 2007,to measure the CIE and COE more accurately.The results are like these:mild COE appears from 1987 to 2007,and the factor is 0.79;faint COE happens at the stage from 1987 to 1994;significant COE happens at the stage from 1995 to 2007.Finally,according to the empirical results, we will give the causes in conjunction with the actual situation in Jiangsu Province,and also the constructive suggestions to strengthen the crowding-in effect and weaken the crowding-out effect. |
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