Regional economic growth in China and the relationship between foreign direct investment inflows: Based on 1998–2008 panel data

Based on the statistical data of 2000-2008 year, covering 31 provinces of panel data, the aim of this paper is to analyze and estimate the relationship between the model of foreign direct investment and the provincial gross domestic product growth rate. We found that foreign direct investment inflows on regional economic growth greatly influence an increase of 1 percentage point per input, it will promote economic growth, 4.8 percentage points. In addition, the increase in investment in fixed assets also promote the region´s Economic growth, an increase of 1 percentage point per input, it will promote economic growth by 1.2 percentage points. Therefore, we should increase FDI and investment in central and western regions, and promote economic development in disadvantaged areas.