Demonstration Study on the Relationship between the Development of Shanghai Service Industry and Foreign Direct Investment
Kai Ou
Abstract
Kai Ou
Abstract
Based on establishing vector autoregression model and Granger causality test,the related data of Shanghai economic development in nearly 20 years were used to test the cointegration relationship and causality between FDI and the development of Shanghai service industry.The conclusion was that FDI was one of the factors that promoted the development of Shanghai service industry.And the changes of FDI on selecting the concrete service industry were analyzed and its influences on the structure of service industry were discussed.
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Based on establishing vector autoregression model and Granger causality test,the related data of Shanghai economic development in nearly 20 years were used to test the cointegration relationship and causality between FDI and the development of Shanghai service industry.The conclusion was that FDI was one of the factors that promoted the development of Shanghai service industry.And the changes of FDI on selecting the concrete service industry were analyzed and its influences on the structure of service industry were discussed.
Key concepts: Cointegration, Granger causality, Foreign direct investment, Vector autoregression, Tertiary sector of the economy, Service (business), Causality (physics), Business