Foreign Direct Investment And Economic Growth Of Chongqing And Foreign Trade Relations Research

Since the implement of our reform and opening policy,the scale and amount that we make use of foreign direct investment(FDI)have been increasing,and the impact of FDI over our economy is becoming more and more obvious.As the youngest municipality in China and one of important cities among western regions,Chongqing is also deeply influenced by FDI.With the fact that our country joins World Trade Organization(WTO) and the pace of world economy integration accelerating,FDI already becomes an important content and fundamental ingredient in our country's economic development,and it is the same to Chongqing.So it has an important actual significance to research the relations between FDI and economic growth in Chongqing,as well as that between FDI and foreign trade in Chongqing.This paper first reviews the relevant references home and abroad,then research problems using theory and demonstration together, qualitative and quantitative analysis as well.To the latter part,in specific,first,have an effect analysis to the impact of FDI over economic growth and that of FDI over foreign trade respectively,to grasp effect mechanism to FDI over economic growth and that over foreign trade from macroscopic view. And then,with Chongqing's reality,summarize and analyse the current situations and characteristics to use FDI in Chongqing generally,expecting that readers can undersand the overall condition about making use of FDI in Chongqing.On this basis,with these relevant data,based on some new measure methods just like co-inergration theory,Granger cause test and so no,this part has empirical tests about the relations between FDI and economic growth,as well as those between FDI and foreign trade in Chongqing respectively.Also,there is an explanation about the results of the empirical tests,to get a reliable conclusion according to the rigorous theory and demonstration.And the result is that both of the relations between FDI and economic growth ,as well as those between FDI and foreign trade in Chongqing are stale for a long term.,and to some extent, FDI has a pulling effect to economic growth and foreign trade in Chongqing.Moreover,FDI is the cause of economic growth and foreign trade in Chongqing,but on the contrary, economic growth and foreign trade are not the causes of FDI surging in Chongqing.In my opinion,to attaract more FDI, the government should begin with better policies and soft and hard wares and so on..Meanwhile,I hope these results can supply a scientific basis to econmic development in Chongqing.At last,this paper brings forward relative policies and suggestions on our using FDI on the basis of the above theoretical analysis and empirical test from it's problems,current situations and characteristics in Chongqing.