A Research Into Crowding-in And Crowding-out Effects Of FDI Based On Nanjing

As the development of FDI , the domestic and foreign scholars'research concentration of economic effect of FDI in our country has changed from its economic growth and the technical extension effect to the capital formation effect in our country, that is, concentrate on the research whether FDI promotion or restrain our domestic investment. As the capital of Jiangsu province, Nanjing occupys an increasingly important position in Jiangsu'FDI. Therefore, the research of Nanjing will have the extremely typical meanings. But the large-scale FDI into Nanjing has what influence to its domestic investment? whether the FDI increase domestic investment (Crowding-In Effect, CIE) of the host country, or suppress the domestic investment (Crowding-Out Effect, COE) of the host country.Nanjing city of Jiangsu Province is to be researched in this article. It is from related concepts and theories of FDI and crowding-in and crowding-out effects obtaining, then we will carry out a comprehensive description of status quo of FDI in Nanjing, such as The development process, the overall size, industry distribution, geographical distribution, source distribution and the investment. And then on the base of mature theoretical models and existing findings of FDI, using the Panel-Data and Eviews analysises, selecting the historic statistical data about Nanjing ranging from 1985-2008, we establishes the measurement models of Nanjing to do holistic analysis, an empirical analysis of two different methods reached the same conclusion, that is significant COE happens to domestic investment in Nanjing, extrusion coefficients are 0.67 and 0.58. Finally, according to the empirical results, we will give the causes in conjunction with the actual situation in Nanjing city, and also the constructive suggestions to strengthen the crowding-in effect and weaken the crowding-out effect.