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Analysis on relationship between FDI and economic growth in China based on OLS model

Chen Zhao

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Abstract

In order to reveal the relationship between FDI and economic growth in China,statistical data of Chinese GDP and FDI from 1983 to 2006 were used to study the relationship between FDI and economic growth in China based on OLS model.The results showed that FDI played a certain role but not the main character in promoting economic growth.Under certain policy the expansion of foreign direct investment scale could promote economic growth.

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What this paper is about

In order to reveal the relationship between FDI and economic growth in China,statistical data of Chinese GDP and FDI from 1983 to 2006 were used to study the relationship between FDI and economic growth in China based on OLS model.The results showed that FDI played a certain role but not the main character in promoting economic growth.Under certain policy the expansion of foreign direct investment scale could promote economic growth.

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Available abstract

In order to reveal the relationship between FDI and economic growth in China,statistical data of Chinese GDP and FDI from 1983 to 2006 were used to study the relationship between FDI and economic growth in China based on OLS model.The results showed that FDI played a certain role but not the main character in promoting economic growth.Under certain policy the expansion of foreign direct investment scale could promote economic growth.

Key concepts: Foreign direct investment, China, Economics, Economic expansion, Order (exchange), Scale (ratio), Investment (military), International economics

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