Jiangsu Fdi Effective Empirical Research

Since the reform and opening up, JiangSu has been one of the biggest areas absorbing foreign direct investment (FDI) because of its geographical advantage. FDI has gradually become the most active and potential factor of Jiangsu's economy. Based on the investment situation of FDI in Jiangsu, the paper makes quantitative study and empirical evidence on the macro-benefit and micro-benefit of FDI in Jiangsu and concludes that FDI is conducive to the increase of export, labor, financial income, GDP and the optimization of economical structure, as well as the increase of productivity of local enterprises through the technology spillover. But at the same time, FDI widens the gap between different industries and areas. Finally the paper puts forward that we should improve the ability of introducing FDI, strengthen the guide of industry and area to foreign investment, and enhance the learning ability of local enterprises so as to further the benefit of FDI in Jiangsu.