An Empirical Analysis On The Effect Of Foreign Direct Investment On Hubei's Economic Growth

Along with economic globalization, the multinational corporations as the main part of foreign direct investment (Foreign Direct Investment, simple form is FDI), play the more and more important role in the economic development. The domestic and foreign scholars study the inner link which FDI promotes the inflow and the host country economic growth from the different angle,the scholars generally consider: FDI brings the capital and the overflow effect increase the host country economical growth in the very great degree. The foreign capital already becomes the great important part of China economy, the FDI inflow increases the Chinese economy opening degree, promots the Chinese economic growth. But because there is serious unbalance between different area in China in the inflow and effect of the foreign invests, for example, comparing the coastal area to the mid-west area ,the first attracts more foreign direct investment than the second, therefore the contributions of FDI is more obvious in the east and south area. Hubei as the central part of China, how to efficiently use the foreign capital is worth discussing and researching.The datas are mainly from the Hubei statistics yearbook,the Hubei economic yearbook, and the on-line material, as well as analyses according to these material . The researching method is the induction description (qualitative analysis) and the correlation econometrics model (quantitative analysis).This paper is divided into 4 parts. Part I: Introduces the related concepts of foreign direct investment, research significances, research techniques and the domestic and foreign researchsumrnaries. The goal is to clear about the methods, grasp the full technical route, and build the foundation for the concrete factors. Part II : Analyzes FDI condition in Hubei Province from diffrent angle:the source area distribution, the profession distribution,the using method and the regional disparity ,namely display the FDI development tendency and present situation in Hubei Province. Part III: Studies the influence which FDI contributes to the Hubei Province economy, mainly through econometrics model study FDI and the GDP intrinsic relations. Part IV :Based on the second, third parts, this part proposes the concrete countermeasures of FDI in Hubei Province.