| In recent years, research on FDI and regional economic growth in China is a hot issue with a lot of research achievements, mainly about FDI's effect on regional economic development, the relationship of FDI and economic development, FDI's spillover effect, and the influencing factor of FDI introduce quantity, etc. Related studies show that different researchers have reached different conclusions. There are two main conclusions .One is that FDI plays a positive role and produces spillover effect. The other to the contrary is that most researchers think that FDI introduce quantity is related to natural condition (such as infrastructure, etc.). This paper primarily considers influencing factor of FDI and relation between FDI and economic conjunctively, studies FDI of the host can most effectively influence economic growth in some kind of condition, and figures out whether FDI can influences economic growth in multi-factor role.Based on the unbalance panel data of our country 31 provinces or autonomous regions in 1992 to 2007, using panels smooth transition regression model the paper studies the effects of FDI on the growth of economy. According to the information of the data itself by the endogenous grouping, this paper selects eight factors of FDI: market size, openness, industrial structure, the labor cost, infrastructure, human capital, conglomeration effect and financing effect etc. to measure economic growth. Firstly,analyze the effects of FDI on economic growth using influencing factors of FDI as transition variable of model; secondly, consider that conversion variable directly affects economic growth, at the same time as an transition factor indirectly influences the effects of FDI on economic growth; thirdly, comprehensively consider eight factors and effects of FDI on economic growth, analyze the model and select market size as conversion variable.Research result shows that FDI has a significant positive impact on Chinese economic development through the univariate and two variables model; the economic growth effects of FDI exist the nonlinear and smooth transition characteristic features in 31 regions; the eight factors which influence FDI can be analyzed through the panel smooth transition model. Taking the eight factors as conversion variable, each model will generate corresponding threshold value, thus forms high and low economic growth regimes. The sample data depicts the smooth changes in those high and low economic growth regimes. Different regions can be sorted quantitatively and can be divided into different economic growth regimes for the sake of difference which generates from the economic growth effects of FDI, then the corresponding policy recommendations can be put forward.The market scale is the relatively important factor which affects the economic growth effects of FDI in the univariate smooth panel conversion model. Two variables panel smooth conversion model is better and more reasonable than univariate smooth panel conversion model. The comprehensive multivariable panel smooth transformation model analysis shows it is the market scale not the FDI that mainly affects economic growth. Taking market scale as threshold value, different economic growth regimes will be generated and the sample data has smooth transitions in different economic growth regimes. The empirical analysis reasonably explains the economic effect difference of regions bringing FDI in china. The comprehensive multivariable model analysis shows that FDI is the sufficient conditions but not the necessary conditions for the economic growth. All provinces should actively introduce FDI and also should concern bearing capacity, cooperating ability and the role of economic growth effect of FDI as well as the introduce quantity of FDI. |
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