Research On The Economic Effects Of Outward Foreign Direct Investment(OFDI)of Shandong Province

Factors of production in the context of the era of economic globalization, countries can maximize the benefits of optimal allocation of resources, so that the global economy tightly linked. To maximize their own economic interests, countries to continuously through foreign direct investment, seeking to exploit the resources of other countries, to actively participate in the global division of economic cooperation, achieve economies of scale, in order to gain maximum benefit from the investment-led international division of economic cooperation. the outward Foreign direct investment of Shandong Province has become an important way to solve resource bottlenecks in the current process of development, bypassing trade barriers; industrial restructuring and upgrading, and to promote sustainable economic development in Shandong. Therefore, this article from the way of macro perspective, research and analysis of the economic effects of outward foreign direct investment in Shandong Province, have some theoretical guidance and practical significance.This paper is divided into six sections. The first chapter introduces the purpose, research status and research ideas; The second chapter discusses the theories of foreign direct investment and its economic effects; The third chapter analyzes the current development situation, distribution of location and industry, characteristics and necessity OFDI of Shandong, Provides the realistic foundation for the analysis economic effect of OFDI; The fourth chapter analyzes the mechanism of the effect of OFDI on the three aspects of economic growth, foreign trade and industrial structure adjustment in Shandong, Laid the theoretical foundation for the empirical analysis of the next chapter; The five chapters of the focus of this article, by constructing the measurement model, Research the effects of the economic growth, Foreign Trade and industrial restructuring OFDI of Shandong; Analysis of the relationship between OFDI and economic growth by using stationarity test, error correction model and Granger causality test; Through the establishment of Almon finite distributed lag model, analysis of the impact of OFDI on export trade; Using Johansen cointegration test and the generalized distance method (GMM) analysis of the relationship between the changes in the structure of the one, two, three industry and OFDI of Shandong; The sixth chapter according to the practical situation of Shandong province’s OFDI and economic development, From the aspects of foreign investment access, investment main body, industry and location choice, Put forward the countermeasure and suggestion of scale and quality OFDI of Shandong.