Foreign Direct Investment,Consumption and Economic Growth in China
The paper probes into the relationship among FDI,domestic investment,consumption, interest and economic growth through the cointegration theory,the granger cause,the error correction model and the impulse response.The results from above researches show that all the explainable variables have positive relationship with growth except interest,consumption has the strong linkage with and Granger causes growth GDP,FDI has effect on GDP positively but not significantly in the long run.Consumption granger cause economic development,implying it is the economic direct driver forcefully.Compared with consumption,FDI indirectly functions on economic expansion as a catalyst rather than resulting in inflows of capitals in large quantity.In short term,FDI contributes to GDP significantly but consumption doesnt effect on growth at the significant level.According to the impulse response,FDI functions on domestic investment,consumption and interest in the positive manner,showing their complementary relationships.Therefore,the horizontal links and action of FDI on other economic variables are far and wide to growth.And their co-integration function is the foundation for the economic polices.
Foreign Direct Investment Economic Growth Co-integration
Chen Ying Li Bing Xiang
School of Business Administration,Xian University of Technology 710048
国际会议
西安
英文
295-312
2010-08-01（万方平台首次上网日期，不代表论文的发表时间）