An Empirical Study On The Influence Of FDI On GDP In Yandu District

With the deepening of China’s opening to the outside world, foreign investments which introduced to the enterprises in Yandu district grow quickly and the scale of the use of foreign direct investment expand unceasingly. As a result, the export-oriented economy in Yandu district has achieved great development. With the implementation of the coastal development strategy in Jiangsu province, Yandu district get another opportunity to achieve leapfrog development.Under this background, studying the relationships between foreign direct investment and economic growth in Yandu district has important practical significance to timely formulate and adjust the policy of using foreign capital and to realize regional economic sustainable and healthy development. Based on the related theory of foreign direct investment and economic growth and the related literature at home and abroad, and using the data of foreign direct investment and regional GDP in Yandu district from 2000 to 2012 as sample, this paper comprehensively analyzes the development, present situation and existing problems of foreign direct investment in Yandu district. Furthermore, using binary VAR model, this paper explores the impact of different ways of FDI on GDP in yandu district. Through the granger causality test, this paper proves that one-way granger causality exists between GDP and FDI of foreign-invested enterprise, GDP and wholly foreign owned enterprises, GDP and Sino-foreign joint venture in Yandu district. Meanwhile FDI is the cause, while GDP is the result. But there is no obvious causality between GDP and FDI of Chinese-foreign cooperative enterprises. Finally, this paper puts forward some policy suggestions for utilization of foreign direct investment in Yandu district.