FDI Heterogeneity And Regional Economic Growth In China

Since 1978,when China began to reform and open up,the Chinese economy has embarked on a high-speed growth model.Today,China has become the world's second largest economy.FDI has played an important role in promoting the success of China's economy.The continuous inflow of foreign capital not only solves the problem of shortage of capital and investment,but also brings advanced scientific experience and management technology.But at the same time,with the gradual increase of economic strength and economic level,the imbalance of regional growth in our country is becoming more and more prominent.And the expansion of FDI and regional economic development is not balanced degree of expansion was a positive correlation is the phenomenon of synchronous growth,therefore,FDI on China's regional economic development imbalances played a role,is there any relation between the two,become an important subject.Previous studies have concluded that FDI has a positive effect on economic growth,and on its uneven effect on regional economic growth has different opinions,on the one hand,to chase Dunne(Arthur c.hase-Dunn,1975),the pool on this and the original(Yukiolkemoto and MineUehara,2000)is a representative of scholars believe that FDI and regional economic development imbalance between positively correlated;And,on the other hand,gustafson and Johnson(B.G ustafsson and modes ohansson,1997)such as scholars believe that FDI or reduce the host country domestic economic development gap,or with the host country national economic development imbalance has little to do.But what they have in common is to focus on analyzing the impact of foreign investment on regional economic development,while ignoring the quality of FDI and the quality of its utilization.In fact,the influence of FDI in the region economic development mainly through two ways:the first way is as general of capital investment,the area has a direct increase per capita capital capacity,thus makes the area to expand investment scale and improve the level of productivity and regional total demand level,it focuses on the number of FDI requirements are put forward.Another approach is the spillover effect of FDI.Unlike domestic investment,FDI can not only provide supports on the scale of capital,it will bring more advanced technology,the industrial mode,mode of production and management experience,improve the ability of a region's economic development in an all-round way.And the size of the spillover effect of FDI depends on the quality of foreign investment,so the quality of FDI will make to enhance the spillover effect,and thus drive the area economic development.Therefore,based on previous literature,this paper established the evaluation index,FDI and FDI and regional economic growth from the traditional regression model,the quality index increase in FDI,establish new regression model,using the 22 provincial panel data from 2006 to 2006,analysis of the foreign investment quality impact on the size and extent of regional economic growth.And eventually come to the conclusion,and points out that the quality of FDI have an impact on regional economic growth in China,and the higher the quality of the FDI to speed up the economic growth,so later in the use of FDI in China,should not only pay attention to the number of FDI,more attention to the introduction of FDI by the quality,so as to accelerate the economic transformation in China,gradually improve the present situation of unbalanced regional economic development,promote the sustainable and healthy steady economic development of our country.