Research Of Foreign Direct Investment On Economic Growth In Hubei Province

Along with economic globalization,the multinational corporations as the main part of foreign direct investment(Foreign Direct Investment,simple form is FDI),play the more and more important role in the economic development. The domestic and foreign scholars study the inner link which FDI promotes the inflow and the host country economic growth from the different angle,the scholars generally consider: FDI brings the capital and the overflow effect increase the host country economical growth in the very great degree. The foreign capital already becomes the great important part of China economy, the FDI inflow increase the Chinese economy opening degree, promotes the Chinese economic growth. But because there is serious unbalance between different area in China in the inflow and effect of the foreign invests, for example, comparing the coastal area to the contributions of FDI is more obvious in the east and south area. Hubei as the central part of China, how to efficiently use the foreign capital is worth discussing and researching.The article analyses FDI condition in Hubei Province, Studies the influence which FDI contributes to the Hubei Province economy, mainly through econometrics model study FDI and the GDP, proposes the concrete countermeasures of FDI in Hubei province.