Fdi, Export And Brics Economic Growth Relationship Is A Comparative Study

The"BRICs", as the main representative of the emerging countries, is admired by its economic size and growth rate, while foreign direct investment and trade have played an important role in promoting economic growth . In this paper, based on the period data which include FDI, export and gross domestic product (GDP) from 1992 to 2008 of the"BRICs", we use the methods of co-integration analysis and variable co-relations to empirically analysis the relationship of FDI, export and economic growth. Using the co-integration analysis, we find that in the long term, China's FDI, export and economic growth has the long-term co-integration relationship. We also know that FDI and export trade have a positive role in promoting economic growth. In particular, the elasticity of export is more bigger than that of FDI. As a result of the uncertainty of variables, India, Brazil and Russia do not have the long-term stable relationship. In addition, the economic growth and export of the"BRICs"have a strong correlation with the correlation study of the four countries'FDI, export and economic growth. At the same time, on the basis of empirical research, this paper studies the different reasons from the empirical results. Also, we point out that China should learn from other countries'experience in economic development . So China should change its economic development model, reduce excessive dependence on external demand and expand domestic demand as another engine of economic growth. In addition, the article also put forward several suggestions and measures in attracting foreign investment and adjusting industrial structure.