A Research On The Effect Of The Domestic Private Investment Crowed In And Out By FDI On The Perspective Of Marketization

Along with our country reform and open policy push forward, the marketization process constantly improve, the trend of the world economic integration is more and more obvious, FDI has continued to inflow our country largely. FDI play an important role promoting China’s economic growth, industrial structure upgrade, technological progress, human resources development and management level. But there is no denying that with the FDI inflowing, the negative effects to our country’s economy are also gradually focused. FDI will crowd out domestic investment. This subject has always been the hot spot of academic circles, many domestic and foreign scholars have studied on this issue, but the conclusions are putting in big difference.Durfing economic structure transition time, the footsteps of our country marketization are accelerating, but most scholars who studing the influence of FDI to our domestic investment ignored two important problems. First, the influence of market environment (system) factors on the relationship between FDI and domestic investment; Second, the domestic investment do not distinguish between state-owned investment and private investment to study.In this paper, based on the perspective of macroscopic system environment were studied the marketization process of pan-pearl river delta regional relationship between FDI and domestic private investment. First of all, this paper states the research background of this article, the existing literature are summarized, receive the research purpose and significance, based on them, put forward two assumptions. Second, this paper selective analysis the theory system about the effect of FDI to our country private investment. Finally, using the pan-pearl river delta region1995-2012data, the panel data model and state space model is established, based on FDI and the interaction between FDI and marketing, the empirical test that the influence of FDI to China’s private investment in the process of marketization of our country. The research results show that:first, at present under the conditions of economic transformation in our country, the improvement of marketization will make FDI crowd in domestic private investment. Second, with the constant improvement of the marketization, FDI to domestic private investment crowding-in effect is diminishing marginal productivity.