Foreign Direct Investment In Economic Development In Shanxi Province

Scine the reform and opening policy issued, Foreign Direct lnvestment has actively forced the ecnomic development of ShanXi probvince .As the result of evidently quickened pace of foreign capitals'utilization , ShanXi provincial economy has been developing along a track of sustained speedy and steady manners. Although ShanXi province has been expanding the introducion of foreign capitals and guiding the direction of their investment ,there is still a larger gap between ShanXi province and other five cental provinces on the level of foreign capitals'utilization.. This text deeply understand the level of economic development and the state of FDI in ShanXi, analyze the relationship between economic growth and FDI, and help to the adjustment of the policy of absorbing foreign capital in the future.This thesis defines the concept of FDI. After studying the interrelated literatures,the author analyses present situation and structure feature of absorbing foreign capital in aspecs of foreign capitals'scale,form, origin sector,region,investmental location by industry, by using time sequential data from statistical data of ShanXi Province, which based on the basic theory of FDI and economic growth.Basing on analysis of FDI structure features, and combining with existing research results,the thesis absorbs an applies efective positivist research methods and discusses the extensive influence on ShanXi economic increase of FDI, by using analysis result and metric searches. First, through the study of the imported foreign capital of ShanXi province since 1992, there is a long-term stable relationship between FDI and economic growth according to the co-integration analysis, and it is found that Granger Causality exists through Granger-Causality test. It is concluded that the per FDI makes greater contributions to economic growth. Secondly, by using linear regression, statistical analysis was done on the time series data of some indicators of economic growth in ShanXi.At last, summarizing and some suggestions on how to utilizing foreign capital are given on the basis of the analysis result.