A Study On Relationship Between FDI And Economic Development In Chongqing

Under the background of the global economic integration tendency,the foreign direct investment is playing a more and more vital role in the economic development of the country. The theoretical research results also promulgate the vital role of foreign direct investment for the host country.These mainly display that foreign direct investment increase the capital, promote the economic development,optimize the industrial structures and supply the employment opportunities.More than 30 years' history of reform and open policy in China is a history that the foreign direct investment promote the economy develop fast in China.Now FDI has become one of the most active parts in Chinese economy.The inflow of FDI has increased the opening degree of Chinese economy,promoted the development of Chinese economy.But due to seriously unbalance districts,the coast area has attracted more FDI than inland area.So the economic contribution from FDI is mainly manifested in the coast area. Chongqing,as the unique municipality in inland area,has played a role of linking the eastern and the western parts.How Chongqing develops its economy making use of FDI is worth discussing and studying.The data of article comes from statistics almanac about Chongqing,statistics almanac about China,and other material in the web.And I will use qualitative analysis and quantitative analysis to study the issue.The article introduces the background,significance,and research status in domestic and abroad firstly;expatiate theory of FDI and economic development;sums up the use of FDI in Chongqing since reformation and opening.Then the article analyses the relation between FDI and the economic development in Chongqing,points out the problems about FDI in Chongqing depending on statistical data.In the end the article put forward the countermeasure and advice combining the actual situation in Chongqing.The article introduces the status of using FDI by two aspects of the journey and characters.The journey of using FDI in Chongqing experiences phases of developing slowly, developing quickly and developing steadily.The article demonstrates the characters of using FDI by origin,industry,region,investment ways and investment incentive.The article demonstrates the relation between FDI and economic development in Chongqing from GDP, industry structure and employment.FDI pulls the economic development in Chongqing.And Granger-causality test indicates that FDI pull the economic development in Chongqing,the economic development in Chongqing also attracts the inflow of FDI.FDI promotes the development of the second and the third industry and increases the employment in Chongqing. In addition,the article points out that there are such problems as unbalance,the small total scale of FDI,and FDI contribute insufficient employment in Chongqing.The problems affect the efficiency of using FDI,and must be resolved in the future as soon as possible.