Abstract:Based on the statistical data of foreign direct investment(FDI),domestic investment and GDP of 30 provinces in China from 1983 to 2003,this paper empirically analyses the crowd in-out effect of FDI in China's east,mid and west areas by using the econometric model of Panel Data.The result of study shows that there exists crowd-out effect in east area,and significant crowd-in effect in mid area,while in west area the crowd-out effect of FDI is remarkable.Finally,the paper explains the demonstration results and puts forward some policy advice.