The Demonstrational Study Of Spillover Effects Or Crowding Out Effects On FDI

The delivered studies of spillover effects or crowding Out Effects on foreign direct investment (FDI) haven't given consistent conclusion. This kind study is few in Chongqing and no other studies can be directly used for judging the effects on FDI in Chongqing. The economy in Chongqing stands on a fast development stage by Now. The utilization and the development of FDI are placed in the key of period. Therefore, this question should be study imminently.To begin with, the research define the crowding out or spillover effects, and discuss the approach, behave and mechanism about crowding out or spillover. At the same time, the research analyzes the factor of crowding out with spillover effects.Secondly, we will completely analyze the FDI present condition and industrial structure in Chongqing. Researching the positive effect,contribution and the problem of foreign enterprise,choose the variable and parameter for model.Draw the way of thinking from the Feder to establish two models. Using full corporation dataset and a panel dataset of the manufacturing industry from 2002 to 2006 in chongqing, we will establish the first model to study the spillover effects of FDI on domestic industry. Using the full dataset from 1996 to 2006, we will establish the second model to study the crowding outs or spillover effects of FDI on investment and economic increase. Finally,we will bring up the policy suggestion on the foundation that have been analyzed. The results indicate that crowding out effects and spillover effects of FDI is not significant on domestic industry as a whole. It also shows that the crowding out effects and spillover effects of FDI on economy increase and home investment in Chongqing is unsure.The research contents have some improvement foundation on the related research. Firstly, this text brings up the spillover or crowding out effects on FDI including three levels at least, such as, investment, technique and economic increase. We will establish the model respectively. Secondly, this research use full corporation dataset and gross economic dataset to study the effect of FDI, and choose the deal index to establish the model.