The Wage Spillover Effect Of Middle Area’s FDI And Corresponding Policy Proposals

Since the reform and opening up, the proportion of the central six province in thenational total amount of economy decline continuously. It comes "central collapse"phenomenon. In order to realize the rise of central China, to undertake the transfer ofindustries and attract foreign capital actively, taking advantadge of foreign investmentpromotely is an important strategy. As economic globalization proceeds and continuousoptimization of investment environment in our country, China has become the mostattractive host country of FDI. But the regional distribution of FDI is highly uneven. Andit shows “high east low west”pattern. Many Chinese and foreign scholars’ researchshows that the wage spillover effect of foreign direct investment will affect the hostcountry’s wages. And exploring on the wage spillover effect of the central region has thethe realistic significance to reduce the income disparity with developed region.This paper aims at researching on our country’s current situation of FDI and thewage spillover effect of middle area by reading a lot of literature and collecting datas.And comparing the regional characteristics between east area and middle area to analyzethe reasons of mechanism and different results of the wage spillover effect in differentareas. At last, putting forward the practical policy recommendations to make moreefficient use of foreign capital, introduce of technology, improving the talent level andsolve other problems of people’s livelihood.