Research On The Relationship Between FDI And Technology Progress In China

Technology progress is the final source of economic growth. Whether FDI could boost host country's economic growth in long term actually depends on whether it could promote host country's technology progress. Science China adopt Open-door Policy, it has become one of the most important destination of world FDI. This article analysed the effect of inward FDI on Chinese technology progress. By employing Granger Causality Test, this article found that inward FDI did course the technology development in China, meanwhile, the findings also shows that technology progress is a positive factor for inward FDI of China too.