| Since reform and opening, the huge economic achievements of China have attracted worldwide attention, including attracting foreign direct investment (FDI) which has played an important role. Foreign direct investment in the rapid increase in the size of huge inflows of FDI, a high growth rate, making the impact of FDI on China is increasing.Foreign direct investment entering the country, in addition to funds to make up the gap, but also can bring technology, management experience, overflow; foreign direct investment in the growth of the scale of the development of the domestic economy has played a positive effect, but also brings a series of problems. In many cases, foreign capital crowed-out of the domestic, seriously affecting the development of domestic capital. In particular, to deepen the reform of major international investment group after the entry, making the industry more and more of the domestic impact of foreign capital, and some industry which has been dominated by foreign investors receive a dominant position within the capital to face survival. Countries in order to achieve the purpose of effective utilization of foreign capital, foreign capital policy is also changing. Nature of capital is the pursuit of fame and wealth, foreign investment is no exception, previous relevant theoretical studies of foreign direct investment that the introduction of foreign investment in developing countries can absorb advanced foreign technology and management experience in the imitation and learning play to the strengths and avoid detours, even beyond abroad, but in practice we find that foreign investment does not necessarily willing to put his technical experience automatically transmitted to the FDI importing country, that is, if not guidance and restrictions on foreign direct investment does not take the initiative to play a good advantage effect. Foreign capital into the industry and regional imbalance is fully confirmed this. This paper’s concern is the crowed-in and crowding-out effect of foreign direct investment at the regional level, differences in research, which is a realistic study.In this paper, domestic and foreign capital to the crowed-in and crowding-out effect of the differences of the object of study, through theoretical research and empirical analysis of panel data, the comparison of foreign direct investment effects of regional differences and to study the causes of such differences.This paper is divided into six chapters. The first chapter is to study the background and research purposes, introduced the current scale of foreign investment into the growing, and the entry of foreign capital has brought various aspects and implications, some have a positive effect, but also have a negative effect, we should know how to increase the positive effect, reduce the negative effects. The second chapter is a theoretical overview of the rise of foreign direct investment has caused theorists great interest in this issue, there are some theories of foreign direct investment, and domestic experts and scholars arrived at by empirical studies of foreign direct investment in China some of the status quo. Chapter III of this article the data model because of incomplete data, to get rid of Tibet and Qinghai, and the rest of the provinces have done a Provincial Panel Data Analysis. Chapter IV is the model calculation and model analysis of the results. Chapter V is a result of the huge differences in the region cause analysis. Chapter VI is the policy recommendations and inadequacies.By studying this paper, draw the following conclusions:Foreign direct investment in eastern, central and western entry, from the time series point of view, the growing trend has emerged, particularly in central and eastern regions, the size of a very large amount of foreign investment. In the crowed-in and crowding-out effect on the three significant regional differences. The eastern region, a significant crowding-out effect, and within the very significant differences between the provinces; in the western region of the crowding-in effect significant, but the region provinces, municipalities and autonomous regions in eastern than the much smaller difference, and all the shows to crowed-in the posture; and crowed-in the central region of the crowding-out effect was not significant, the region and some provinces, some crowed-in the extruder, and crowed-in and out of a considerable number of provinces, the whole, expressed as not significant. This may be new ideas mainly through empirical analysis, specifically studied to the crowed-in and crowding-out effect of foreign direct investment in China’s regional differences and variability, revealed that the eastern, central and western regions of the crowding-out effect of foreign direct investment to crowed-in the differences in some of the laws and tried to explain the reasons for the differences.Shortcomings of this article is that the conclusions of the analysis of panel data mining is not enough depth, due to limited data sources, the crowed-in and crowding-out effect of foreign direct investment in China’s regional variability in the causes, not with the empirical test to the analysis, makes analysis of the causes is not specific enough. |