On t he purpose of doing research on the effect of FDI on economy in different consum e level,this paper establishes the threshold model to confirm the existence of o penness threshold effects by using China provincial panel data from year 2000 to 2009.The result showed that double threshold effect of FDI on economic growth e xists,and FDI boosts the economy most significantly when the opening degree betw een the first and second threshold.Most provinces in eastern of China are in low er consumer level.In order to improve the positive impression of FDI to economy increase,their economic growth mode needs to change from mainly depending on inv estment to consuming.While the central and western provinces are still based on consuming,they should increase the input of FDI to motivate local economy.
Liu Min Cao Zhongyang .
Study on Threshold Effect of FDI Impacts on Economic Development——Based on Consuming-Degree View. Journal of Industrial Technological Economics. 0