Crowding in and out effect of FDI in the Yangtze Delta region

摘要

In recent years,the economic development of China's Yangtze River Delta has attracted attention from academics at home and abroad,especially the direct investment of foreign investment enterprises in the area.It strongly promotes the economic development of this region.This paper from the quantitative point of view to study the correlation between foreign direct investment and the Yangtze River Delta economic growth; conclusion of a strong correlation between foreign direct investment and economic development of the Yangtze River Delta region is obtained by regression analysis;we use Cobb-Dauglas production functions and Thoro-Swan growth model,by selecting panel data from year 2000 to 2008 for the quantitative measurement and analysis on labor and capital investment contribution on economic growth in the Yangtze River Delta area. Therefore we get the conclusion that the Yangtze River Delta foreign direct investment creates jobs,increases the use efficiency of labor resources.Furthermore,from empirical analysis of foreign direct investment we prove the regional internal investment crowding in and out effect from and get conclusion that the foreign direct investment has the crowding in effect on regional economic development,that is,every one unit of foreign direct investment will bring 2.4241 units increased domestic investment.