AN EMPIRICAL RESEARCH ON THE EFFECT OF FDI ON ECONOMIC GROWTH IN SHANGHAI
Kang Yan-hong
Abstract
Kang Yan-hong
Abstract
As for economic globalization,entry into WTO,and the status of national economic center,Shanghai has been the highland of inward FDI.This paper uses ADF test,Granger causality test and multivariable regression model to analyze the relation between FDI and economic growth in Shanghai,based on the data of Shanghai from 1981 to 2006.Our study finds FDI is the Granger reason of economic growth in Shanghai,and it has positive influence on Shanghai's economic growth by capital itself,capital's attachment and capital's circulation.
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As for economic globalization,entry into WTO,and the status of national economic center,Shanghai has been the highland of inward FDI.This paper uses ADF test,Granger causality test and multivariable regression model to analyze the relation between FDI and economic growth in Shanghai,based on the data of Shanghai from 1981 to 2006.Our study finds FDI is the Granger reason of economic growth in Shanghai,and it has positive influence on Shanghai's economic growth by capital itself,capital's attachment and capital's circulation.
Key concepts: Granger causality, Economics, Foreign direct investment, Capital (architecture), Globalization, Economic globalization, Causality (physics), International economics