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2006•Journal of Zhengzhou Institute of Aeronautical Industry ManagementRequires access

Research on Relationship Between FDI and Economic Growth in China

LI Wei-don

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Abstract

In this paper the relationship between FDI and GDP in China is analyzed by Granger causality test and multiple regression model.It is found that the relationship is bi-directional causal.It is suggested the utilization of FDI should be focused on not only the quantity but also the quality of FDI with the rapid development of FDI.

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What this paper is about

In this paper the relationship between FDI and GDP in China is analyzed by Granger causality test and multiple regression model.It is found that the relationship is bi-directional causal.It is suggested the utilization of FDI should be focused on not only the quantity but also the quality of FDI with the rapid development of FDI.

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Available abstract

In this paper the relationship between FDI and GDP in China is analyzed by Granger causality test and multiple regression model.It is found that the relationship is bi-directional causal.It is suggested the utilization of FDI should be focused on not only the quantity but also the quality of FDI with the rapid development of FDI.

Key concepts: Foreign direct investment, Granger causality, China, Economics, Causality (physics), Quality (philosophy), Econometrics, Regression analysis

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