Empirical Research On That FDI’s Impact On Economic Development Of Shandong Province

As the main form of international capital flows, Foreign Direct Investment (FDI) areplaying an increasingly important role in the economic globalization, its relations with thehost country economic growth grasp the attention of both domestic and foreign scholars. A acoastal province, Shandong’s comprehensive economic competitiveness ranks sixth in thecountry since the21st century, and the FDI utilization of Shandong rates among the top sinceReform and Opening up Police, foreign capital inflows effectively make up the gap of savingsand investment in economic growth, and are an important force in stimulating Shandong’seconomic. But how strong is the promoting function of FDI on economic growth in Shandong?Which respect can FDI affect on the growth of economy? Is there any problems in the processof using FDI? These questions need to be in-depth analized, and combined with the statisticalsoftware to measure influence degree between variables, and combined with the statisticalsoftware to measure influence degree between variables, which will provide decision-makingbasis for better use of FDI in Shandong Province.This article ueses both quantitative analysis and qualitative analysis methods. On thebasis of comprehensive analysis of the characteristics and performance evaluation of the useof FDI in Shandong and with the aid of econometric statistical software, this paperqualitativlly analyzes the influence degree between FDI and capital formation, technologyspillovers, export trade and regional GDP, the results show that: as FDI increases by1%, theinvestment rate of the current period will increase by2.43%, domestic investment7.47%,local technological progress0.01%, export trade value0.23%, the contribution of FDI to fixedassets investment is most significant, export trade rank second, but its contribution to thetechnical progress is little. As FDI increases by1%, the GDP of Shandong will increase by0.09%, the significance level is weak, and there is a causal relationship between the growth ofFDI and GDP. Local domestic investment increases by1%, GDP will increase by0.58%.Labor force increases by1%, GDP will increase by0.36%. We can find that FDI’s influenceon the economy is weak, and Shandong’s economic growth is mainly driven by domesticinvestment. FDI utilization increases by1%, the manufactured goods exports value willincrease by1.11%, the mechanical and electrical products exports value will increase by0.77%, the high-tech products export value will increase by0.86%, so FDI’s impact on theexport of mechanical and electrical products and high-tech products is significant.This article contains seven chapters. The first chapter mainly introduces the researchbackground and significance, domestic and foreign existing research results and the research contents and methods of this article. From the using scale, regional distribution, industrydistribution and source country of FDI in Shandong, Chapter Two introduces utilizationfeatures of FDI and its performance evaluation. Chapter Three to Six empirically analize theinfluence degree that FDI brings to capital formation, technology spillover, export trade andregional GDP in Shandong, and analyze the influence mechanism of economic development,and establish the corresponding econometric model, using stationarity test, cointegrationanalysis and granger causality test to verify. On the basis of the summary, Chapter Sevenanalyzes the problems in the process of using FDI of Shandong, and according to researchresults and the problems, further optimization suggestions on using FDI are put forward.