| In 1978,China announced the implementation of reform and opening up the policy.Since then,the Chinese government has been committed to attracting foreign direct investment(FDI).Under the government's strong advocacy,China's foreign investment situation has been greatly improved.By the end of 2014,the accumulated FDI inflows in China reached USD 1.51 trillion.After the reform and opening policy,China's economy has made a spurt of progress and people's living standards have risen rapidly.However,not all areas of the economy have been developed at the same time.The economic situation in the central and western regions has lagged behind the eastern region and this has attracted the attention of many economists in China.Foreign scholars began to study the FDI earlier than China's,meanwhile there are numerous empirical studies have shown that FDI encourages economic growth by increasing capital formation,providing employment opportunities,introducing advanced technologies and Industrial Agglomeration.Therefore,the government can attract foreign capital inflows to promote their own economic development and narrowing the regional economic gap.Since then,China's scholars have begun to try to find a way to promote the development of regional economy through the research findings of FDI.To achieve this goal,we need to know what factors affect China's FDI inflows and differences of the factors in the eight major economic regions.In order to address these issues,multiple regression models based on one panel data sets are used to examine the determinants of FDI inflows in central region.The results confirm that FDI is attracted by six factors and these factors have different influences to FDI inflow in different regions.Based on the empirical results,well-directed recommendations for policy-makers in different regions are provided,which will help them to better utilize FDI inflows based on regional comparative advantages and to reduce regional disparities. |
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