Research On The Influence Of Foreign Direct Investment On Economic Growth In Hebei Province

Since the reform and opening up, China’s economic have rapid development, andachieved unexpected results. China, as a developing country, catch up with many developedcountries to the world’s gross domestic product, jumped to the second place on ranking table.This is due to China’s opening up. opening up means that China encourages and welcomespeople from all over the world come to China for investment. At that time, China is lowproductivity, labor costs are much lower compared to developed countries, so foreigninvestors in order to avoid high domestic labor costs, are trying to invest and set up factoriesin China to obtain greater profits. And China has foreign investment, China’s economy hasinjected fresh blood,make the Chinese economy alive and rapid development. With thecontinued refinement of the international division of labor, economic globalization is aninevitable trend, while opening play an increasingly important role in a country or region.Only the deepening of reforms to improve the level of opening to catch the big wave of globaleconomic development.As an industrial province of Hebei Province, and has a unique geographical advantage,attracting a lot of foreign investors. Since China’s opening up, expanding the scale of foreigninvestment in Hebei Province, Hebei Province’s economic development has played a crucialrole. Foreign Investment in Hebei Province from quantity to quality, from the rough to thegradual development meticulous development, from investment to investment in secondaryindustry tertiary industry, and both show the Hebei province in the utilization of foreigncapital and continue the process of continuous improvement mature. However, therelationship between foreign direct investment and economic growth in Hebei Province, manyscholars remain skeptical. In this regard, the experience of other scholars studied in this paperfor the study of foreign direct investment and economic growth in China and on foreign directinvestment in the study of local economic growth, and to explore foreign direct investment oneconomic growth in Hebei impact.Firstly, in the understanding of the situation based on the use of foreign capital of Hebei Province, through qualitative and quantitative analysis, research the relationship between thetotal value of foreign direct investment in Hebei province and region of production,co-integration test results prove the existence of foreign direct investment and gross regionalproduct in Hebei Province long-term stable relationship, Granger causality test results showthat under certain lag, there is a causal relationship between foreign direct investment andeconomic growth in Hebei Province. Then there is a correlation in their premise, HebeiProvince in the use of foreign direct investment in the problems, and finally proposeappropriate policy recommendations based on these issues, Hebei Province to help improvethe level of foreign direct investment, thereby promoting economic growth in Hebei Province.