Foreign Direct Investment And The Economic Growth : An Empirical Research Based On Panel Data

Since China has carried out the reform and open door policy in 1978,the quantity and amount of attracted FDI is growing rapidly.FDI Plays an important role in the growth of China's economic,and as a matter of fact is an important component of China national economy.But now China's economic structure is not perfect,the economic development excessive dependents on external economy,and economic growth suffers external factors' restriction.How can utilization of foreign capital effectively and reasonably to promote the national economy to develop sustainably is the common aspiration of every citizen.The traditional neo-classical growth theory think that foreign direct investment which only increase the capital accumulation,thus can only influence on short-term economic growth.Because policy variables also can produce short-term effect on economic growth, therefore any policies that encourage FDI are short-acting.But since the endogenous economic growth theory has been put forward,more and more scholars think that FDI can also promote economic growth for the long term.It has the vital significance of the developing countries such as China in how to actively use foreign capital and constructing a healthy and orderly economic structure and system.Therefore, the research of the development trend and regional characteristics of FDI has being the current focus in academia.In recent years, most Economics did their empirical study on the relation between FDI and the economical growth,basing their study on the entire country or some developed provinces and regions.on the contrary,not so many scholars pay attentions to this relation basing on cities.Even if we can get some articles of this kind,they always are elaborated in theory.To solve the problems mentioned above.I do the research on the relation between FDI and economical growth of prefecture leve cities and above theoretically and empirically,after carefully analysing the basic situation of our country taking advantages of FDI since the yesr of 1978.It is worth mentioning that in this paper we use some advanced methods-the unit root test and cointegration analysis of panel data. First introduced the theory of Moran spatial autocorrelation index, and empirical test.the phenomenon of spatial aggregation of FDI Second, quantitative analysis economic growth affected by FDI using the measurement model. Finally,it offers a sum-up of the whole paper and presents a few policy recommendations for those people and institutions that may have their interest in them.