Research In Effects Of FDI On Economic Growth Based On Endogenous Growth Theory

Since the reformation and opening,our country has gained much achievement by absorbing FDI. With the globalization of economy, it improved FDI to flow among countries frequently. So it's very important that how to make an objective evaluation of the contribution of FDI to economy growth to make valuable policy for using and absorbing FDI effectively.In this paper, based on the research of predecessors, by using endogenous growth theory, we have improved a quantity-ladder model which proposed by Romer. This improved model is different from other researchers'model, in which we can measure technological spillovers productivity. In following researches, firstly assuming that there are tow parts of capitals'conduct in national market, one part of capitals'conduct is generated by using national R&D, the other is coming from foreign companies and bounding by two conditions: the rate of FDI companies introducing capitals from the home companies; the rate of FDI companies putting new capitals to the national market. Two parts of capitals'conduct can be accumulated to supply technological knowledge for creating new capitals. Then growth route of the economy growth rate in equilibrium condition can be gotten by using economic theories. But it's imposable to get such equilibrium since there are more lower-skill persons in China, so in this paper, we research the relationship between FDI and economic growth in the view of technical progress, and creates an econometric model.In the part of econometric research, firstly, this model is estimated by using time series of China. And based on the conditions of FDI in China, the effects of FDI imports and exports to the economic growth is tested, and we also get evidence from time series to know whether FDI from different countries have different effects on the national economic growth. Secondly, we make further researches using evidence from provinces'panel-data. According to the factors which maybe affect the spillovers of FDI, we made some other research by using regressions method respectively. Finally, making Granger no-causality testing between values added of high-tech industries and R&D persons in FDI companies. Other variables are also tested and analyzed entirely.In conclusion, research results are in the following text: 1) In the view of introducing new capitals to create spillovers, effects of FDI on economic development of China is negative, but the whole effect will be positive only if the FDI scale is big...