research on china’s regional differences of crowding-in or crowding-out effect of fdi on domestic investment研究中国的地区差异的拥挤或fdi对国内投资的挤出效应.pdf

Modern Economy, 2012, 3, 884-890 /10.4236/me.2012.37111 Published Online November 2012 (http://www.SciRP.org/journal/me) Research on China’s Regional Differences of Crowding-In or Crowding-Out Effect of FDI on Domestic Investment Yang Xu, Xiaoling Yuan Economic Finance School, Xi’an Jiaotong University, Xi’an, China Email: jamesxuy0528@ Received October 4, 2012; revised November 9, 2012; accepted November 18, 2012 ABSTRACT Since the reform and opening up, FDI has made a significant contribution to China’s economic development; however, the crowding-out phenomenon appears inevitably in some districts and industries where FDI enters intensively. Con- fronted with the new environment of foreign capital use after the international financial crisis, our country has begun to adjust investment attraction work from the policy level and needs to specify the work the next step according to every region’s situation. Based on this background, this paper examined how foreign investment impact domestic investment over the 30 years, especially contrasted regional differences of crowding-in or crowding-out effect of FDI on domestic investment in eastern, central and western China, then made further analysis of the causes, in order to supply the policy makers and investors with effective references. Keywords: Foreign Investment; Domestic Investment; Crowding-In and Crowding-Out; Regional Differences 1. Introduction tion, especially with the shadow of global financial crisis still over our head; therefore, the effective use of foreign Since the implementation of opening up policy