Study On Regional Difference Of FDI Influence On Economic Growth In Jiangsu

As one of the important ways to further deepen the international division of labor and production,foreign direct investment,becomes one of the world's most notable economic powers and has a pivotal position in the society and international economy.Both of domestic and overseas research shows that FDI plays a critical role in promoting economic growth,but at the same time,it could lead to a regional imbalance of economic development in host countries.Pinch of Jiangsu province has been always at the top,but economic differences phenomenon between various regions in the province is also obvious,north-central economic strength far behind south,there seems to be some sort of connection between foreign investment and regional economic differences,and find out the link will better for utilization of foreign capital of Jiangsu province and also it's important to coordinate economic development in the future.First,paper from the regional economic differences and utilization of FDI in Jiangsu province to analysis the current situation,then through the perspective of FDI to analysis Jiangsu regional economic gaps,found FDI from "volume" and "quality" two aspects affects the three regional economic difference: one is the FDI regional distribution imbalance;another is in the development of local economy,the ability of effective utilization of FDI exists differences.Given this,paper from this two aspects for empirical analysis,by using the data from 1996 to 2013 in Jiangsu province,through the Gini coefficient,Unit root test,Granger causality test,the results show that regional FDI configuration imbalance in regional economic growth of Jiangsu province has a certain influence,but this effect is limited;And the difference of each area to effective use of FDI and absorption capacity is the main cause of the unbalanced regional economic development in Jiangsu.Based on the empirical results,in terms of Jiangsu province,only in the hope of attracting investment policy to narrowing the difference of regional distribution of foreign direct investment is not the effective way to solve the imbalance of regional economic development,we should focus on improving the utilization ability of FDI,which is the main factor determining the levels of regional economic growth.In short,balancing economic development need the regional discriminatory in terms of absorbing FDI,focusing on foreign industry within the industry and between industries coordinateddevelopment of southern Jiangsu Province;And middle and north Jiangsu should pay attention to rely on local advantages in the development of manufacturing,introducing characteristic industry to optimize the industrial structure of foreign investment.Besides,to improve the investment climate,cultivate human resources,strengthen infrastructure construction,focusing on scientific research,etc for better play to the role of FDI also has an important position.