Empirical Studies Of Foreign Investment Impact On Economic Growth

As the main mode international capital flows, FDI to the economic impact of the role of the host country has been growing concern for domestic and foreign researchers. With the majority of FDI into the area of the national economy, FDI in the country's economic status has risen on all aspects of our economy, all sectors have had a significant impact.As China's economically developed cities, Shanghai has been a large-scale foreign investment and has vigorously promoted the deepening of reform and opening up the development of the market and speed up the process of internationalization, to a large extent in Shanghai to promote sustained and rapid economic growth. The basis of the real estate industry in Shanghai, Shanghai has become the driving economic growth in one of the pillar industries. At present, the empirical studies on FDI focuses on FDI in Shanghai to discuss the economy on a whole, and specifically to the FDI performance in the real estate industry in Shanghai and its contribution to economic growth and other issues, a comprehensive and systematic empirical analysis also not many.In this paper, the amount of foreign investment in real estate investment in Shanghai's economic growth and the relationship between the analysis of the measurement, the use of the method is a real estate investment and China's GDP data for the analysis of cointegration and error correction model to establish, at the same time Granger causal analysis. From the cointegration equation, we can see that foreign investment in real estate on the economic growth elasticity of 1.0533, that is, the amount of foreign real estate investment for each additional 1%, GDP corresponding increase 1.0533 percent. Granger causality test is illustrated in the long run, foreign investment in real estate in Shanghai for the cause of economic growth, that is, the increase in the amount of real estate investment to promote growth by squeezing.May 23, 2007, the Ministry of Commerce, State Administration of Foreign Exchange jointly issued capital letter to (2007) 50 notice: "With regard to further strengthen and standardize the foreign direct investment in real estate notice of approval and monitoring." The circular stresses the Mainland real estate projects with foreign investment must be approved at the same time, all future approval by the local department of foreign real estate companies are required to record the Commerce Department reported. This article holds that the current rules for foreign capital to enter the system mainly based on the control of speculation and prevent price bubbles and to resist the point of view of financial risks. Measures the scope of regulation is too narrow, there is no combination of interests and demands of the real estate industry. For foreign investment, the positive factors, the Shanghai real estate market to promote prosperity and development and improve the competitiveness of local enterprises, such as the lack of both. In such cases, this paper argues that: First, the difference between the main treatment of foreign investment in real estate, to promote market competition; Second, to encourage enterprises to cooperate with each other room, the implementation of mortgage-backed securities; Third, the establishment of trust funds in real estate; its Fourth, to guide the direction of foreign investment; Fifth, to strengthen the regulatory information and improve the information disclosure.