Macroeconomic Effects Of Foreign Direct Investment In The Home Country Empirical Analysis

China's Outward Foreign Direct Investment(OFDI) has made a great breakthrough since the new century., the quantity and quality of OFDI have made significant development. The speed of OFDI is very high, almost all industries have had investment in overseas, the region of investment is distributed all over the world, and the main body of investment is more and more diversified. Then what kind of influences this rapid development have brought to China's economy? In this paper, we analyzed the development process of China's FDI and summarized the status and problems of OFDI at present. We selected proper date of OFDI from 2003 to 2007 in 28 provinces/regions so that we could establish a panel data model. And then from national level and regional level(eastern,central and western region), we conducted empirical analysis which are about the effects of OFDI on import and export trade, employment, formation of domestic capital and national income. The test results of national-level indicated:on trade effects, the China's OFDI from 2003-2007 promoted the development of total trade, exports and imports significantly; on employment, the effect on total employment is slightly negative, but OFDI optimized the structure of employment, which will made a contribution to the industrial structure adjustment; on domestic capital information, the OFDI increased domestic capital in a low degree; on national income, the OFDI also made a contribution to the output, but not so obviously. So, the current rapid OFDI played a great positive effect on China's macroeconomic development. However as China's outward investment's overall scale is small at present, the economic effectiveness that the Outward foreign investments have brought is still very limited. The test results of regional-level indicated:on the eastern region, all effects are higher or equal to national-level; on the central region, since the increase of OFDI flow is not so quick, the effects of OFDI flow is not obviously, but the effects of OFDI stock is in a middle level; on the western region, the scale of OFDI flow and OFDI stock are small relatively, but the increase of OFDI flow is very fast, so the effects of OFDI flow is obvious, but the effects of OFDI stock is not obvious.,it is very hard to compare with other region. The regional economic effects are obvious different, since the foreign investment capacities of the three major regions (eastern region, central region and western region) are uneven. It is the most fundamental way of making OFDI plays an economic promotion effect to fatherly promote outward foreign direct investment's development. Only if formulate the related outward foreign direct investment's promoting policies according to the different regional characteristics and minimize inter-regional gaps of the ability of foreign investment that we can solve the problem of regional imbalance. Therefore, we summarized the experiences of promoting foreign direct investment in both developed and emerging developing countries and made some suggestions about the construction of promoting China's OFDI. It also made some advice for further promoting OFDI and the issues that we should focus on according to the realities of different regions. At the same time, we proposed suggestions that standardize and guide the development of China's OFDI, in order to prevent large-scale domestic capital disorderly out flowing which maybe makes a negative impact on the national economy.