Research On Effects Of China's Regional Distribution Of Fdi On Regional Income Disparities

Since the middle of the last century, along with economic globalization's unceasing enhancement, FDI has started to emerge, under the FDI whole world mobile background, our country formulates has attracted the foreign capital positively the open policy. The FDI accelerates the growth, has promoted enterprise's comprehensive strength, also promoted our country to form a reasonable capital two-way flow the pattern. Obviously, the foreign capital has the profound influence to Chinese society's each stratification plane. Simultaneously, also China will lead globalized in the economic system, and causes China's division of income and the society inevitably is not equal receives the economic globalization the influence.This article tries hard regarding the new growth, the endogenous economic growth theory and the storehouse incites the pours"U"the curve is the rationale but actually, studies FDI and between the income differential relevance, the system elaboration foreign merchant direct investment in the economic development function and FDI to the area income differential influence. Ku"the U curve is but actually"the establishment favors above these two contradictory economic ideals in the marginal product theory as well as the deposit and the expense."Pours U"the theory to think that income differential between resident's will further enlarge in the economic development initial period, but will work as the economic development to the certain extent, the income differential will assume the reduction tendency.Mainly studies between the FDI regional distribution difference and the area income differential stability and the long-term balanced relations with the time series analysis method. First, has calculated 1985-2007 year local per capita national income and the local average per person FDI standard deviation with the statistical method. Then, does with standard deviation this variable on behalf of the area income differential and the FDI regional distribution difference co-operates the entire analysis. Further establishment error correction model, thus between explores the FDI regional distribution difference and the income differential expands quantity regularity. The result proved that FDI the regional distribution difference indeed has the close relation with the area income differential. Finally proposed brings in foreign capital the policy suggestion based on the foreign direct investment and the income differential relations.