（1. Shangdong Research Institute of Technology Strategy Development, Jinan 250012, China;（2. Research Institute of International Economics, Nankai University, Tianjin 300071, China;（3. Business School, Nankai University, Tianjin 300071, China)
Abstract FDI amount may have different effects on economic growth in term of capital heterogeneity. Using provincial data from 1998 to 2008, this paper investigates the effects of local governments’ FDI preferences competition for FDI quality as well as its economic growth effects. Empirical results shows that preferential policies increase the amount of FDI but decrease its quality; higher FDI quality pushes economic growth, and the more preferential policies have less positive economic growth effects.
2013, Vol. 1 
