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Empirical Study on the Relationship between FDI and Economic Growth of China Using Cointegration and Error Correction Model

WU Yong-chao

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Abstract

The article applies the cointegration technology and error correction model to analyze the relationship between FDI and the economic growth of China. The results show that there is long-run equilibrium in the relationship, though the degree of reciprocal impacts over time and short-term dynamic relationships may be different.

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What this paper is about

The article applies the cointegration technology and error correction model to analyze the relationship between FDI and the economic growth of China. The results show that there is long-run equilibrium in the relationship, though the degree of reciprocal impacts over time and short-term dynamic relationships may be different.

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Available abstract

The article applies the cointegration technology and error correction model to analyze the relationship between FDI and the economic growth of China. The results show that there is long-run equilibrium in the relationship, though the degree of reciprocal impacts over time and short-term dynamic relationships may be different.

Key concepts: Cointegration, Error correction model, Economics, China, Foreign direct investment, Econometrics, Reciprocal, Error detection and correction

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