Abstract:Based on the data of 69 prefecture level cities in five provinces in Central China from 2005 to 2015, considering the possibility of spatial spillover effects, this paper adopts the spatial panel data model to analyze the spatial impact of local government competition and land price on foreign direct investment. The empirical research results show that: the reduction of industrial land price and the increase of commercial land price are beneficial to attracting foreign direct investment. Local government competition affects the scale of foreign direct investment by two means, namely, direct and indirect effects on land leasing price. Land prices and government competition can significantly affect the FDI in the geographically adjacent areas. The reduction of industrial land prices and the increase of commercial land prices will inhibit the FDI scale in the adjacent areas. At the same time, the intensification of regional government competition will also reduce the FDI in geographical adjacent areas, but this spatial spillover effect is not significant under the adjacent weight of economic distance, which indicates that the competition in the five central cities mainly exists in the local governments adjacent to each other.