Actual Use Of FDI And The Problems Of Agricultural Development In Henan Province And Countermeasures Research

The main method of current academic scholars about the role of FDI in agricultural development and its influence mechanism analysis is to select variables used by the agricultural industry introducing FDI and agricultural GDP, using econometric modeling for research. The conclusion can be summarized as the FDI introduction to agricultural industry for agricultural GDP growth has obvious positive effects. But this method from the selection of variables is not enough refining, so the conclusion can’t be fitting to the reality well, which can’t be a correct guide to the practice. In order to further explore the introduction of FDI to agricultural industry in Henan province on agriculture development of Henan province and influence mechanism, deriving from the theory of variable selection, demonstration, model research on construction of the three in terms of pushing this issue, I got a series of important conclusions.Accurate selection of variables is the beginning of innovative research, in order to be precise about the number of relations, which is agriculture in Henan province actually utilized FDI amount rather than the commonly used protocols and selecting agricultural GDP to eliminate price fluctuations in real GDP of agriculture and non-agricultural GDP in the name.Based on dynamic analysis under the framework of neo-classical Solow growth model is theoretically proved for the first time whether the improvement of agricultural industry introducing FDI amount or proportion of foreign investment in total assets can significantly promote agricultural GDP growth. From the perspective of mathematical model for the first time to answer whether the agricultural investment can promote the growth of agricultural GDP, laying the solid foundation for further empirical modeling analysis.In the long run, it’s to build once basic logarithm linear regression model for the static equilibrium analysis and in the short term to build error correction model to analyze dynamic disequilibrium. Based on the theoretical and empirical research results and the realistic question analysis, proposed the agricultural industry in Henan province is to introduce reasonable solutions to the problem, and achieve the goal of integrating theory with practice.The results show that based on the empirical results of once basic linear regression model are the study found on agriculture actual use of FDI. It indicates that actual use of FDI in agriculture for each 1%, that agricultural GDP increased by0.3654%. Lagging phase 1, under 5% significance level, agricultural actual use of FDI in Henan province is the one-way causal relationship between the agricultural GDP init. When it lags phase two and three, there is no causal relationship between them.Based on the error correction model of short-term, empirical results found that the adjustments of correction is near to 0.197204 that short-term disequilibrium to long-term equilibrium. It shows that Henan province agriculture actual use of FDI in the short term impact on agricultural GDP is small but the long-term impact is bigger.It also shows that in this particular error correction mechanism, it makes short-term disequilibrium to long-term equilibrium need longer time.