Abstract:Based on the research results of FDI, this paper has summarized Central Chinas current situation of absorbing and utilizing FDI. Then, it also sums up three characteristics of the current situation, which are sustained growth of total amount, relatively balanced distribution and strong ability of absorbing foreign investment. Through constructing VAR Model and quantitatively analyzing FDI and GDP, it can be proved that FDI can positively influence on Central Chinas economic growth, however this influence is not prominent and needs to be enhanced henceforth. Moreover, according to qualitative and quantitative analysis, this paper has given some suggestions, such as optimizing investment environment, improving the performance of foreign investment, creating a fair environment, and strengthening technological cooperation.