Analysis of Co-integration on the Relation between FDI and China's Economic Growth
Lu Lei
Abstract
Lu Lei
Abstract
This paper analyzes the effect of FDI on China's economic growth by utilizing the co-integration and error correction model with the economic data from 1984 to 2003.Empirical results show that there is a stable positive equilibrium relationship between FDI and China's economic growth in the long or short run.Through the Granger causality test,we find that FDI is the reason for China's economic growth,and conversely,the conclusion isn't true.
A significance statement is not available in the OpenAlex record.
A contribution statement is not available in the OpenAlex record.
Method details are not available in the OpenAlex metadata.
Findings are not separately available in the OpenAlex metadata.
Limitations are not available in the OpenAlex metadata.
Application details are not available in the OpenAlex metadata.
This paper analyzes the effect of FDI on China's economic growth by utilizing the co-integration and error correction model with the economic data from 1984 to 2003.Empirical results show that there is a stable positive equilibrium relationship between FDI and China's economic growth in the long or short run.Through the Granger causality test,we find that FDI is the reason for China's economic growth,and conversely,the conclusion isn't true.
Key concepts: Foreign direct investment, China, Granger causality, Error correction model, Economics, Causality (physics), Cointegration, Augmented Dickey–Fuller test