The Empirical Research On Foreign Direct Investment And Economic Growth Of Hunan Province

The economic globalization, which is promoted by the international direct investment to a great extent, has become a main trend of contemporary world economic development. As an extremely important aspect of the economic globalization process, the international direct investment has already superseded the international trade, becoming the most active and important factor that promotes the global economic growth. It is of great significance to study the relation between international direct investment and local economic growth for exploring that regional economic development.Foreign direct investment (FDI) is being more and more effective and has made great achievements in Hunan province since 1980s. FDI not only increases the supply of capital stock and introduces advanced technologies,but also promote the adjustment and upgrading of industrial structure. Therefore, whether we can elaborate the problems by empirical analysis, such as to what extent does FDI influence GDP of Hunan province? Is there causality between FDI and Hunan province's economic growth? The answers will produce positive roles on Hunan province's foreign capital policy, and sum up the experiences of utilizing foreign investment in the past 20 years as well.This paper summarized the relations between making use of foreign investment and economic growth of developing country, then combined with the development process how Hunan making use of foreign direct investment, researched and analyzed the characteristics and influence to Hunan's economic development by absorption and utilization of foreign direct investment in Hunan, studied the impact of FDI on ecomomic growth by the way of empirical studies. At last, put forward the policy recommendation that Hunan making use of FDI.