摘要
In 1978, China under Deng Xiaoping’s reform and open-door policy, China’s gradual establishment of state-owned enterprises （SOEs） are dominant and diverse forms of ownership developing economic system in China. Nowadays, with Taiwan and China following different development paths, foreign direct investment （FDI） and capital accumulation playing being the core aspect of these paths. With the enhancement of national work division, FDI becomes the critical force to implement economic globalization and economic development in different countries. Since the implementation of economic reform and liberation, the influence of foreign capital and technologies on economy in China becomes an important issue. According to the economic figures of the provinces （cities） in China from 1998 to 2012, this study constructs an open inner growth model. Infra-structure affects FDI in both direct and indirect ways. If the construction is more perfect to ensure that the production and transport of a large number of products, Enhance more consumption and market demand; on the other hand, manufacturers and thus increase production, these two aspects can attract more FDI. Research findings show that human capital, research and development （R ＆ D） investment and capital in China have grown and significantly contributed to economic development.
