This paper investigates the following factors: (1) population scale; (2) income level; (3) the expenditure proportion on industrial products; (3) wages level; (5) transaction costs; (6) elasticity of substitution; (7) marginal costs, which functions acted on the horizontal FDI scale of host country from developed country in a monopolistic competition model composed of the developed country enterprises and the host country enterprises. On this foundation trying to study whether the developing country can keep on to draw on more and more horizontal FDI. This paper mainly concludes the following: horizontal FDI flows to the flourishing countries and regions which economic development levels reach to a certain stage from developed countries generally, but the change of transaction costs would influence the location to horizontal FDI. When the transaction cost is bigger, the horizontal FDI also may be thrown to comparatively less developed countries and regions. In a certain period, the market scale of the host country is an important factor to choose location for horizontal FDI. Under the conditions for horizontal FDI entering into, as long as the growth speed of market scale is bigger than it of production cost, the host country can draw on horizontal FDI constantly. Because of the diversified characteristics of the economic development stage, China should choose and arrange in pairs or groups effectively when China makes use of the special policy to draw on foreign direct investments. For eastern littoral it is good to adopt general foreign direct investment policy to attract horizontal FDI, but not to adopt encouraging preferential policies. For the Midwestern it is good to adopt special pertinent preferential policy to promote vertical FDI steps transfer to the Midwest from the eastern littoral