The flowing of foreign capital is related with the economic security of one countries. The experiencesand lessons of many developing countries show that the impact of the foreign capital to the domesticeconomic is often the most important factors of the financial crisis. So it is important to a analysis theforeign capital economic growth effect. Based on the endogenous economic growth model, this paper firstdistricts the three cases of the foreign capital impact and give the three factors of the foreign capitalaffecting to the economic path. The using the sample data of China, we analyze the three factors. Theresults show that all the three factor effets are all positive, which means that the foreign capital utility ofChina is efficiency.
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