Analysis On The Effect Of FDI On Regional Economic Growth In China

In the process of promoting China fast economic growth, important goal is to realize the balanced development of regional economy. With the constant of China opening up and global economic integration, foreign direct investment (FDI) has played a catalytic role for China economic growth. However, whether there is convergence which directly affect the balanced development of China economic is a important problem. Therefore, the study on the impact of foreign direct investment (FDI) on China regional economic growth convergence has important practical significance.This paper describes the theoretical framework of economic convergence and analyses the impact of foreign direct investment (FDI) on economic growth. One is the direct impact; the other is the indirect effects or we can say spillover effects which contains four spillover effects , technology spillover, capital spillovers, human capital spillovers, the system spillover. Subsequently, analyses the absolute convergence, conditional convergence, "club convergence" of China regional economic growth. And concluded that there is neither absolute convergence nor conditional convergence .But there are "club convergence." Finally, put forward the suggestions .To promote the convergence with economic growth ,strengthen complement between eastern and western regions , enhance the efficiency of investment.