A Study Of The Impact About Foreign Direct Investment On Regional Economic Differences In China

Since the marketization reform in 1978,China began a rapid development of economy,made amazing achievements,to draw attention of the world: GDP increased from 367.87 billion yuan in 1978 to 74.4 trillion yuan in 2016,the total came second in the world.At the same time,however,there is a growing gap between regions of economic growth.The great differences between China and the region have become an issue that cannot be ignored,which is related to the development of our country and the well-being of the people.Regional development imbalance not only affects the well-being of people,but also violates the essential requirements and core concepts of socialism.This paper will be divided into eastern,central and western China areas of three parts,through the analysis of the impact of FDI on economic growth mechanism,study how FDI affect China in that appeared in the development of regional economic growth differences.This article selects 1997 ~ 2015,the country 30 provinces,municipalities and autonomous regions(excluding Tibet)panel data,is the provincial GDP as explained variable,through the provincial historical introduction of FDI,the domestic investment of capital,labor,human capital,industrial structure and government factors as the explained variable,on the basis of the cause of the unbalanced development between the regional empirical analysis,to verify the influence of FDI on China's regional economic differences.Empirical studies show that FDI has a direct impact on regional economic disparity in China,but domestic investment is an important force driving economic growth.Due to the unbalanced distribution of FDI regional development have influence on our country's economy,and the cause for this effect,in addition to the inherent geographical factors,the government policy has played a decisive role.In eastern coastal areas take the lead in the opening to the outside world,through the central policy support and location on congenital advantage,its economic growth andFDI introduction to begin to enter a virtuous cycle,further more,the amount of FDI introduction of the east and Midwest gap,expanded the eastern coastal area and inland the Midwest differences in the levels of economic development.At the end of the paper on the influencing factors of FDI on the empirical analysis results,provides the relevant policy recommendations,to solve the impact of FDI to our country economic differences,for the regional balance,narrow the gap between regions to provide some beneficial reference.