Abstract:Urban-level data are used to examine whether there is a significant relationship between foreign direct investment (FDI) location and urban characteristics. Spatial determinant, using more recent FDI data is introduced to test the problems arising from the spatial pattern of the data,and to establish a more appropriate model of econometrics for 33 cities in Yangtze Delta. The econometric analysis of the determinants of FDI inflows across the cities in Yangtze Delta is carried out. The results are; GDP, transportation infrastructure and education level are the factors of avail for attracting FDI, among them GDP is the main factor and labour cost and spatial distance are the disadvantage ous factors.