A Study Of Foreign Direct Investment Action And Avail From The Perspective Of Regional Economy Development

Foreign Direct Investment has become a major factor in promoting global economic growth since 21 st century, especially in developing country, where it plays an important role. There are more Foreign Direct Investment in east region than in west region in China, and it appears a unbalanced development situation. The Government will do better in macro-control and making full use of Foreign Direct Investment, if it understands how Foreign Direct Investment affects regional economic.Foreign Direct Investment refers to the management rights of foreign enterprises as the core, the primary purpose of obtaining profits through the establishment in the host country-owned enterprises, joint ventures, cooperative enterprises and other major forms of foreign investment capital. This paper builds a mathematical model of Foreign Direct Investment on a particular region through Cobb-Douglas Revenue Function. In this paper, we proof starting from two simple regions then extending to finite regions. It has got the conclusion that when the revenue of Foreign Direct Investment up to the maximum, Foreign Direct Investment in a particular region increase with total Foreign Direct Investment, and decrease with the number of the other region growing up.Since 2013, the Chinese haze enveloped most of the region. There have been four large-scale process haze shrouded the country’s 30 provinces only in January 2013.Only less than 1% of the city reached the air quality standards of the World Health Organization among China’s 500 largest cities. The haze also does harm to people’s heath. What is more, the world’s ten most polluted cities has seven in China. This paper also, first analyzing a one dimension example, then using multidimensional Game Theory,does research on the game between the Environmental Protection Department of government and multinational corporation about environmental fee, and study on adding Penalty Factor to the game. It explains the game result why Environmental Protection Department of government and multinational corporation choose the result.This paper also draws many useful conclusions, such as whether multinational corporation chooses to pay environmental fee associated with the cost of Environmental Protection Department. If the cost of Environmental Protection Department is very high,the multinational corporation is likely not to pay the environment fee. If the penalty coefficient is very high, the multinational corporation is likely to pay the environmentfee. The penalty factor plays an important role. The multinational corporation will not choose all the two subsidiaries to escape from pay the environment fee at the same time.The Environmental Protection Department can get theory basis from this paper to deal with environment problems.