The Effect Of Fdi On The Non-balanced Growth Of China's Regional Economic Research

Since the reform and opening up, our national economy has obtained very great achievement. However, the regional economy hasn't grown evenly, and the regional economy discrepancy became more and more obvious. Meanwhile, the quantity of Foreign Direct Investment (FDI) is on a rapid increase. The eastern costal region, owing to its advantages of the economic and geographical features as well as its rich human resources and policies, has benefited a lot from FDI. Due to this benefit, the regional economy discrepancy is becoming a conspicuous problem. Undoubtedly, FDI is playing an important part in the national economy. Study of the relationship between regional distributions of FDI and unbalanced growth of regional economy, especially the question whether the former mitigates or spurs the latter has become a subject which is of profound theoretical and practical significance to the adjustment of strategy for foreign capital utilization and the coordinated development of regional economy.This dissertation, based on theoretical and empirical analysis, using methods of analysis which were applied in the regional economics and the neoclassical economics, makes empirical regression analysis of the 551 samples during 1987-2005 from all provinces in China by using performance index and Eviews 6.0, and studied the effect of unbalanced growth of regional economy. Furthermore, grounded upon the analysis of the factors which influence the regional distribution of FDI, this dissertation bring forward the general approach of regulate regional economy by controlling FDI and specific policy proposals.This dissertation consists of five parts:PartⅠmainly introduces the basic theories, present situation of related study and the background and meaning of the study pursued herein. And the general approach and framework is brought forward.PartⅡcontains the analysis of the discrepancy in the regional economic growth and the regional difference of FDI. This part also expounds the FDI's mechanism of action in the growth of economy.PartⅢ, on the assumption that the regional difference of FDI aggravates the discrepancy in the regional economic growth, starting from the scale of FDI and the contribution rate of FDI to regional economy, performs empirical analysis of the effect of FDI's regional distribution on the regional economy. And this analysis authenticates the forenamed assumption.PartⅣanalyzes the factors which influence the FDI's regional difference from both endogenous and exogenous aspects in order to support the decision making in the next part.PartⅤgives the general approach of regulate regional economy by controlling FDI, and bring forward specific policy proposals according to the features of different regions.This dissertation's innovations are as follows:First, innovation in method of study. Based on the statistical data, empirical examination of FDI's effect on the regional economy in China during the period of 1987-2005 is made from the aspects of both inflow scale and contribution rate by using performance index and Cobb-Douglas production function.Second, innovation in approach of study. Under the guidance of balanced development of regional economy, different strategies of introducing FDI are put forward according to the features of different regions and the existing problems.