Empirical Analysis Of The Relationship Between Foreign Direct Investment And Economic Growth Of Guangdong

The theory of modern economic growth tells us that the technical progress is an important element of modern economic growth, and technical introduction is a major way to shorten technical development period, improve technical level and managerial level, and accomplish technical progress. Many researches indicate that foreign direct investment is the main medium for host country to gain advanced technology, so attraction of foreign direct investment is an important way to gain advanced technology and accomplish economic growth, scientific and technical progress and social development.Foreign direct investment (FDI) has developed rapidly since 1980's in Guangdong. It meets the need of capital and foreign exchange in our province. The technology effect of FDI is considered as an important strategy in the proceeding of our modernization. It is significant to estimate the function of FDI on GDP correctly and to take more effective FDI measures to promote our technology level. Base on above consideration, the thesis first analyzes the relationship of FDI and GDP, and then analyzes the relationship of FDI and technical progress.The empirical research indicates: not only the impact of FDI on GDP growth, but also the spillover effect of FDI on the important factor which can affect economic growth: technology is demonstration. In addition we assess FDI does Granger GDP growth. At last we bring forward some suggestions to adjust the policy of utilizing foreign capital in new period.