Analysis of FDI Difference in Guangdong Province Based on Theil Index

Abstract

: Studying the differences of FDI within Guangdong province is of great significance to guide the rational distribution of foreign investment and narrow the gap between cities. In this paper, Guangdong province is divided into five regions, and then the panel data from 2011 to 2020 to process the Theil index of FDI regional differences in the five regions, which can calculate and analyze intra-regional and inter-regional differences. The results show that the overall difference of FDI in Guangdong province is on the rise, but the contribution rate of regional difference to the overall difference is large, and far greater than the contribution rate of regional difference. At the same time, the regional differences are also increasing year by year. Based on this, this paper puts forward some suggestions, such as overall development of the whole province, speeding up inter-regional industrial transfer and factor flow, giving full play to the radiation role of core cities, guiding the rational distribution of foreign investment, so as to narrow the regional differences.