Abstract:
Studying the crowding in or out effect of FDI on China's automobile industry is an important aspect of evaluating China's automobile industry security.Using the relative data of total investment,FDI, and total output value in China's automobile manufacturing industry,a model is created to discuss the crowding in or out effect of FDI invested in China's automobile manufacturing industry according to the econometric model created by Agosin and Mayer est. about the effect of FDI on domestic
investment,and the result shows that the crowding out effect of FDI invested in China's automobile manufacturing industry is obvious, therefore,it is necessary to control and indirect the inflow of FDI into automobile manufacturing industry form the view point of industry security.Key words: China's auto