Abstract

Regional economic integration is the world's economic development is an important feature, the extent and scope of the integrated development of breakthrough only trade liberalization is increasingly dominated shallow integration, including investment policy to the broader development policy of deep integration . Development of regional economic integration within the region of international direct investment inflows are expected to promote the effect produced, but the occurrence of this effect is closely related with what? Starting from multinational investment motives of the European Union 1996-2006 panel data analysis found that regional economic integration on FDI inflows have a significant role in promoting the country's economic development, service development and other economic conditions of the initial endowment have significant effects on investment potato, China's participation in regional economic cooperation in the development of relevant measures can get some useful lessons. Nowadays, a significant trend of the world economic development is Regional Economic Integration . After enlarging for seven times, European Union is now becoming a rapidly developed and most integrated paradigm among all the BEIs. Its bound and extension are breaking through the traditional theme of trade freedom into deep integration including investment freedom and so on. Does REI really encourage Foreign Direct Investment inflows? And is this kind of promotion similar to dissimilar countries? By analyzing EU's panel data from 1996 to 2006, we find that the REI's FDI effect is positive and significant, and this effect is conlative with the member country's initial economic endowments such as economic development level, development level of the service sector. Ultimately, by learning EU's experiences, we can get some useful enlightenment for China's set down such REI policies