A Comparative Study Of The Effect Of Foreign Direct Investment On The Urbanization Of East-Central-West Typical Regions

With the enlargement of the opening to the outside world and the influence of economic globalization deepens, foreign direct investment plays a more and more important role in the development of the economy. FDI inflows bring great influence to the host country, directly or indirectly affect the country’s economic growth and other factors. The development of the urbanization is a reflection of social progress and it has obvious consistency with the development of economy. Therefore, in order to make better understanding of the influence of FDI to the urbanization and the mechanism of action of FDI to the urbanization, the influence of FDI on the urbanization of east-central-west typical regions is mainly discussed, selecting the Shanghai city circle, Wuhan city circle and Chengdu city circle as the research objects. The effect of FDI on urbanization of typical regions has been focused to explore.Firstly, the situation of the foreign direct investment and the urbanization of the three big regions are summarized, and the foreign direct investment situation and urbanization situation of the eastern Shanghai city circle, central Wuhan city circle and western Chengdu city circle are also described. Secondly, analyzing the mechanism of FDI action on urbanization from the theoretical point and it reflects the FDI could promote the development of the region’s urbanization by economic growth, industrial concentration, industrial structure, and institutional change and population migration. Again, the empirical analysis of FDI effect on urbanization is made on the basis of the comparison. Finally, the corresponding countermeasures and suggestions are put forward.The selecting data of time span of this paper is from 1998 year to 2012 year. The analysis results conclude that FDI has a promoting effect, positive effect on the development of urbanization, and the effects have obvious regional differences. The biggest impact of FDI on the urbanization is for the Chengdu city circle, west region is the largest, followed by the Wuhan city circle, central region, the last is for the Shanghai city circle, east region. The further study of the urbanization quality for the three big city circles is did, and the analysis result shows that the urbanization quality also exists regional differences, the quality of urbanization is the highest for the east part, the second is for the central region, the lowest is for the west region. Thus, while improve the speed of urbanization, the quality of urbanization also need to improve. Each region could formulate corresponding measures to attract FDI according to the specific circumstances and the respective features to improve the level of urbanization.