Effectiveness Analysis Of FDI Impact On The Economic Growth Of Sichuan Province

In recent thirty years of China’s reform and opening up, China sustained rapid economic growth, which made tremendous development has attracted worldwide attention, that making China became the GNP of the world’s second large developing countries. Chinese provinces, municipalities and autonomous regions of the economy has also undergone a revolutionary change. Foreign direct investments play an important role in those changes, played a huge role in promoting. Whether FDI promoting regional economic growth and whether FDI is positive for region’s economic growth? There is no common answer. There’s different conclusions in different places, the role of foreign direct investment also vary. What is the specific mechanism of the positive effect? In order to answer these question, this paper base on one hypothesis that foreign direct investment have a positive effect on regional economic growth,then we analyze the mechanism and effectiveness of regional economic growth affect by FDI and the way that FDI promoting regional economic growth.Foreign direct investment in the promotion of relations has been an important subject of academic research, current research around foreign direct investment to promote regional economic growth is how to promote and factors that affect the promoting effect of regional economic growth expanded. At present, the researches on foreign direct investment and regional economic growth are focus on the relationship between foreign direct investment and regional economic growth, there is a lack of foreign direct investment on regional economic growth mechanisms and effectiveness of research.This article is considered whether foreign direct investment is conducive to regional economic growth and how foreign direct investment promotes regional economic growth? We starting from these two basic issues, using statistics data in Sichuan Province as an example to analyze foreign direct investment whether has positive impact on the GDP of Sichuan Province. Then we consider the linkage way between foreign direct investment and regional economic growth, using these aspects, including consumption the reduction in energy consumption, technological progress, and export promotion,to the empirical analysis of foreign direct investment role in promoting regional economic growth and the impact mechanism. I believe that foreign direct investment affect regional economic growth from many ways, but the most important thing is to effectively reduce unit energy consumption, improve the regional level of industrial technology, and promote export growth these three aspects. Then I use Sichuan, for example, to empirical analysis to verify that the above argument is correct.Using Sichuan regional statistical data from2000-2009, this paper empirical analyses the FDI impact on regional economic development. it includes the impact channels and impact effective. Empirical analysis shows that FDI has obvious impact effects on Sichuan economic development, including direct impact effects and long-term lag effects. Thinking from impact channels, this paper expounds that FDI’s impact effects on Sichuan economic development bases on these aspects:energy consumption, improve regional technology level, development regional export. Related government polices should focus on these aspects for improve FDI’s impact effectiveness. The research results of this article has some practical significance for the economic development of Sichuan Province. At this stage, China is in a transition period of economic transition, the economic center of gravity gradually from east to west excessively. it’s very important to accelerate economic development in Sichuan.The result of this paper is very useful. IT can guides our local governments to improve the utilization of foreign capital effectiveness, and make the development of investment policy which has a positive practical significance for western areas with location disadvantage.