Research On The Regional Economic Development Effect Of Foreign Direct Investment In China

Foreign direct investment(shortened form FDI), on the one hand, has significant promotion to our country. On the other hand, it aggravates the balance of economy in East, Middle, West region and enhances the feature of dual economy in our country. To research on the different effects of FDI in regions in our country has meanings in theoretical and practical to the strategy of balance-developing in regions and society harmonious.FDI is unbalancing between East, Middle and West regions on the distribution status. In the total amount, firstly, foreign companies invest more funds in East than in Middle and West.There is seriously disequilibrium in founds allocation between regions. Secondly, Middle and West region present the trend which more attractive than East in absorbing founds.In the view of structure, there are more Asian Firms invest in East region in relative proportion, while more Europe and American firms invest in Middle and West regions.In the view of industry, most of the foreign firms invest the manufacturing industry in different regions.The relative proportion in electric, gas and water production supply is higher in Middle and West than East. In the view of investment modes, the ratio of foreign exclusive invest in East is higher than in Middle and West.Based on the empirical analysis of region economic development effect of FDI, we make conclusions as follow:all the regions have promoting effect in GDP,capital, wages,employ and technology except East region, in which have negative effect in wages and technology.The possibly reason is the foreighner in East region,which come from HongKong, Macao and Taiwan etc.These Asia countries utilize the cheap human resources in our country.As a result,they won't improve the level of wages and technology. Furthermore,the high level of wages in domestic enterprises and the solely-owned foreign investment have negative effect in wages and technology.The promoting effect in GDP and capital will change to negative one.It tells us that we should pay attention to other economic factors.For FDI will not always do good to econoy in our country.Some policy suggestions were made. East region should accelerate the speed of industrial upgrading and attract more Europe and American investment. Middle and West region should make industry policy which accord with the regional advantage, increase investment in human resources and attract founds not only come from foreign but also East.