A Study On The Influence Of FDI On Beijing's Economic Growth

On the base of a study on economic growth theories, analyzed the mechanism of how FDI affects the economic growth from both direct and indirect ways. On one hand, FDI affects economic growth directly, through total supply total demand Human resource and R&D; on the other hand, FDI affects domestic firms' output through crowding in and crowding out effects and technology spillover effects, through domestic firms influence economic growth accordingly.After a brief description of Beijing's FDI actuality, the dissertation used the actual data to make a demonstration analysis on if the FDI accelerates Beijing's economic growth. The demonstration analysis also explains from both direct and indirect ways. The model will divide the national economy into two parts which are foreign firms and domestic firms. The model of direct influence assumes FDI has no effect on the domestic firms' output, the result shows that Beijing's FDI accelerates Beijing's economic growth, FDI increase brings Beijing economic growth increase. Model of indirect influence assumes that FDI has effect on the domestic firms' output. The result shows that FDI increases boost the growth of domestic firms' output, and elicit the contribution rate of FDI on domestic firms.The dissertation continues to make theoretic and demonstration analysis on the influencing elements which affects the domestic firms' output. And the result indicate that influencing elements including government strategy, technology gap between domestic and foreign firms, economic opening extent, human resource storage, basic establishment and FDI have positive effect on domestic firms' output. Last, the dissertation gives several suggestions to Beijing government based on the research result and Beijing's actuality.