The Theoretical And Empirical Research On Foreign Direct Investment

The thesis is based on the research on the theory of Foreign direct investment and made empirical Analysis by using statistics data of Beijing's FDI and GDP from 1987 to 2005. We drew two conclusions: the first, Beijing's FDI and GDP have onecointegration------there is a long term relationship between Beijing's FDI and GDP,they have the same tendency. The second, Granger relationship of two factors shows that the relationship between GDP and FDI is at a low level, LNGDP is a Granger cause of LNFDI. In the long run, GDP growth prompts foreign direct investment, and economic growth of Beijing depend on efficient run of domestic economy.