A Research Of The Effects Of FDI On Economic Growth And Employment

With multinational corporations playing an increasingly important role ineconomic development, foreign direct investments impact to host country’s economybecomes a focus of discussion of the economics profession.Based on a review of previous studies, this paper conducts an empirical analysisof the impact of Yunnan Province on economic growth and employment. Specifically,it discussed the effection of Yunnan FDI on economic growth, total employment, andemployment in various industries. Through these analyzes we found that FDI plays srole in promoting economic growth and,employment, while showing a causalrelationship at different times.This paper is divided into five parts. The first part describes the researchbackground, significance, and proposed research methods after reviews previousstudies; The second part reviews the theories of FDI, economic growth andemployment; The third part analyzes the actual use of FDI in Yunnan Province inrecent years, by studies the stages of FDI development, FDI structure and severalcities’ FDI performance and potential; The fourth part studies economic growth, totalemployment, employment in various industries to describe the impact of FDI on them,it concretely uses ‘Unit root tests-Cointegration test-Error correction-Grangercausality test’ steps. The fifth part put forward the recommendations after itsummarized the conclusions of above-mentioned procedures.