The Study On FDI Effect On Economic Growth Of Our Country

Foreign Direct Investment (FDI) impact on economic growth of our country has been the focus that the theory circle and government department have paid close attention to all the time, with international capitals constantly flowing into and enlarging, especially our country instead of the U.S.A becoming in the world first FDI-flowing country for the first time from 2002. Domestic scholars have done exhaustive research on it from the nature by adopting many indexes and from the ration by using traditional econometrics models under OLS law. This text combines the nature and the ration together, and innovates the trying on the basis of existing document .It considers the stationary process of the data, has carried on the stationarity inspection of the data, and uses Cochrane-Orcutt method to correct spurious regression that may exist. What's more, this text studies relation of variable from data generating process by introducing Cointegration Theory that has developed recently for more than ten years, preventing from bringing some subjective and random when using traditional econometrics models under economic theory or understanding in economic behavior to confirm relation of variable. In terms of demand, and in terms of technological progress regarding FDI as then technological key element, the text probes into the effect on economic growth of our country of FDI, have set up the growth model with endogenous characteristic of key element, and has made with practical experience and research results of having better consistency of the fact.The full text is divided into four chapters. Chapter one: FDI and relevant theory of the economic growth have carried on the detailed survey. Chapter two makes a concrete analysis of FDI impact on economic growth of our country in term of determining the nature from different key elements each. Chapter three studies the size of this kind of influence by way of the real example, and examines if FDI and economic growth of our country exist with causality and if it is one-way or two-way to exist. The last chapter: The text puts forward tactics that our country utilizing FDI should take at present.Our country has already joined WTO, and it is important components of the economic development strategy of our country to develop open economy and utilize the foreign capitals actively. Combining analysis results, this text has put forward the countermeasure and suggestion that should have sure practice directive significance for the benign cycle of the economic growth promoted and foreign capitals utilized.