Empirical Study On Dynamical Effect Of Foreign Direct Investment On Urbanization In The Pearl River Delta

Foreign Direct Investment is an important factor affecting China’s economic andsocial development. However, the traditional urban theory emphasis on the domesticfactors in the analysis of the dynamic mechanism. The academic study of ForeignDirect Investment about the issue is not yet in-depth, staying in the stage when simpleempirical test is mainly used. A mature theoretical analysis system hasn’t formed.Pearl River Delta is the vanguard of China’s reform and opening up. This papertakes Pearl River Delta for the study sample, a typical region introducing into a largenumber of foreign direct investments, basing on the basic theory of FDI andurbanization, through careful study of the development situation of the region’sforeign direct investment and urbanization, tries to deal with the dynamic effect ofFDI on urbanization in the region from five aspects, which are economic growth,upgrading the industrial structure evolution, promoting trade, financial and technicalsupport, and labor-absorbing, analyses the effect mechanism, and tests the dynamiceffect by empirical methods of time series of regression and co integration. Becauseconnotation of urbanization has moved beyond the range of population urbanizationfor a long time, the paper further calculates the level of cities’ urbanization in thePearl River Delta, and re-uses panel data to validate the model. Finally, based on theconclusions of this paper, recommendations of the region’s urbanization and urbanconstruction about how to more effectively utilize foreign direct investment topromote the recommendations of the region’s urbanization and urban construction，theregion’s urbanization and urban construction come up.