Abstract:Based on asset specificity to measure the heterogeneity of FDI, this paper explores the influence mechanism of change of economic policy certainty on the scale, stability and technical structure of FDI in the framework of real option theory, and uses the data of 24 foreign-funded enterprises in manufacturing industry to verify. The research shows that the decline of the degree of economic policy certainty has a restraining effect on the scale of FDI, and leads to its high level of volatility, which is positively regulated by asset specificity. Empirical research shows that after China's accession to the WTO in 2001, FDI in the predictable policy environment shows a steady growth trend; after the financial crisis in 2008, the rise of policy uncertainty leads to the decline of manufacturing FDI growth and the rise of volatility. Further research shows that R & D-intensive FDI with high-level asset specific investment is more sensitive to the degree of economic policy certainty. The creation of a consistent, transparent and predictable policy environment is not only conducive to improving the stability of FDI, but also more targeted and effective to attract high-level FDI.