Analysis Of The Impact That Foreign Direct Investment Has On Regional Economic In Shandong Province

Since the1990s, FDI (Foreign Direct Investment) plays an increasingly important role inglobal economic growth, it become a major force in promoting economic globalization withinternational trade and the transfer of technology. Since the1980s, foreign direct investmentin Shandong Province had periodical development. Foreign direct investment not only makesup the insufficient of capital, but also introduces advanced technologies and promotes thedevelopment of foreign trade business and the adjustment of industrial structure in Shandongprovince. It is said that if we don’t research foreign direct investment, we will not study thedevelopment of economy in Shandong Province completely. Therefore,on the basis of therelevant theories and documents home and abroad, this paper combines quantitative analysisand qualitative analysis together to study the effects foreign direct investment to GDP, theemployment, the industrial structure, the trade scale and the regional economic of ShandongProvince, and it tests the influences that FDI has on GDP,the employment, the industrialstructure, the trade scale and the regional economic growth by utilizing economic data ofShandong province. The quality analysis analyzes FDI condition in Shandong Province fromdistribution of industry, distribution of regions and distribution of main sources. Thequantitative analysis study the impact that foreign direct investment played on economicgrowth, the evolution of industrial structure, the development of foreign trade and regionaleconomic growth in Shandong province by building regression models; Moreover, this paperuses FDI performance index to study the negative effects of FDI to the imbalance ofdevelopment among different regions in order to strengthen the argument. At last, On thebasis of the conclusion, some suggestions using FDI efficiently are put forward on someissue.