2008•Innovation The European Journal of Social Science ResearchRequires access

Dynamic Effect of FDI on the Economic Growth in China

Dan Wang

Abstract

This paper uses each province as the research object, then we make use of their data of 1988-2005, establish dynamic panel data model to test the effect of FDI on regional economic growth. The result shows that in our country FDI has positive effect on economic growth, but lagged 2 FDI has the negative effect on economic growth. Meanwhile, FDI has different influence in different region. In eastern area, FDI has very strong effect on economic growth.

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Available abstract

Key concepts: Foreign direct investment, Panel data, China, Economics, Research Object, International economics, Economic geography, International trade