An Empirical Study On Regional Disparity Of FDI In China

Since the reform and opening up, China’s national economy has made tremendous achievements attracting people’s attention, and foreign direct investment acts as one of the most important force playing an indispensable role in promoting China’s economic and social sustainable development. Foreign investment provide with constant power. for China’s fixed asset investment funding, promoting the process of industrialization, and other aspects in our country economy. In recent years, countries competing for FDI are becoming increasingly fierce along with the global economic meltdown, the rise of emerging market economies and the rising costs of raw materials and labor, even the United States has also put forward "manufacturing return" policy. These all result in the great uncertainty of foreign capital entering China, so that the analysis of this question is very necessary.Although the developed eastern regions in China occupy a larger FDI proportion, the proportion has been decreasing gradually in these years, and the gap between eastern regions and other areas because smaller. As to FDI industry structure, the proportion of the tertiary industry in eastern area gradually increased, we can ensure from which that the eastern area has entered into the FDI service industry FDI leading stage. For the central area in China, the proportion of the second and third industry proportion has been stable, but the second industry is significantly higher than that of tertiary industry, which means that manufacturing industry is likely to invest in the central region. What’s more, real estate industry contributes a quite high proportion in the central region. The tertiary industry FDI proportion in the West area has been rising since2000, and become stable around70%since2007. What’s more, the proportion of real estate industry is decreasing these years. The results of the empirical part test that the display that the marketization increases by1%, the GDP can rise by1.961%. What’s more, the degree of regional marketization, regional market scale, economic development level, the aggregation effect the entry of foreign capital has a positive relationship. And the degree of marketization index takes the largest contribution. What’s more, regional marketization affects FDI most in the eastern region, economy level and market scale affect FDI most in the central region and the market open degree affects FDI most in the western region. This paper is mainly based on the statistical analysis using the comparative analysis of dynamic and static, empirical analysis methods with a large number of charts and data.