Foreign Trade, FDI And Economic Growth

Foreign Dierct Invesmtent (FDI) and export are usually considered as the activator of the economic growth, the relationship among them has long been a subject of much interest of international scholars. Since reform and opening-up, in China the export promotion policy was pursed, the scale of international trade expanded, and the dependence upon the foreign trade enlarged; A series of policies were published to attract foreign investment, FDI has become the fundamental mode of the use of external resources. The expansion of international trade and FDI has played an important role in domestic economic growth. This article takes the export, FDI and economic growth as the study focus, a combination of the theoretical analysis and empirical research and econometric modeling methods are used to research the relationship among FDI, export and the economic growth in Shandong Province. In this progress, we consider the stationary of the date, and have carried on the stationary inspection, by doing ADF unit test, Co-inetgrated test and Granger causality test on FDI, export and GDP, it comes that FDI and export are all the Granger causality of economic growth. Finally, the article proposes the thinking and countermeasure for Shandong province to develop foreign trade and go on attracting foreign direct investment as the strategy to promote the economic growth.